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United States Steel's Upcoming Earnings: What You Need To Know

By Seth Jayson - Updated Apr 7, 2017 at 12:03PM

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Checking expectations

United States Steel (NYSE: X) is expected to report Q4 earnings around Nov. 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict United States Steel's revenues will drop -5.6% and EPS will compress -102.6%.

The average estimate for revenue is $4.55 billion. On the bottom line, the average EPS estimate is $0.03.

Revenue details
Last quarter, United States Steel logged revenue of $4.65 billion. 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
Last quarter, non-GAAP EPS came in at $0.14. 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.

Recent performance
For the preceding 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

The full year's average estimate for revenue is $19.45 billion. The average EPS estimate is $1.39.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,958 members out of 2,115 rating the stock outperform, and 157 members rating it underperform. Among 441 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 401 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
$25.06 (2.37%) $0.58

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