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United States Steel Beats Up on Analysts Yet Again

By Seth Jayson - Updated Apr 7, 2017 at 12:02PM

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Just the facts, Fool.

United States Steel (NYSE: X) reported earnings on Oct. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), United States Steel met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.

Gross margins dropped, operating margins contracted, net margins expanded.

Revenue details
United States Steel recorded revenue of $4.65 billion. The 13 analysts polled by S&P Capital IQ predicted sales of $4.64 billion on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $5.08 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.14. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS of $0.28 for Q3 were 87% higher than the prior-year quarter's $0.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 7.3%, 300 basis points worse than the prior-year quarter. Operating margin was 0.3%, 310 basis points worse than the prior-year quarter. Net margin was 0.9%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.55 billion. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $19.45 billion. The average EPS estimate is $1.08.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,959 members out of 2,116 rating the stock outperform, and 157 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 408 give United States Steel a green thumbs-up, and 40 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United States Steel is hold, with an average price target of $28.03.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

United States Steel Corporation Stock Quote
United States Steel Corporation
X
$23.45 (0.28%) $0.07

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