U.S. Steel Stocks Decline Due to Weak Guidance

Investing.com -- Shares of United States Steel Corporation (NYSE:X) fell by 5% following the company’s updated fourth-quarter guidance that fell short of market expectations. The steel producer projected a loss of adjusted net earnings per share in the range of $0.29 to $0.25 for the fourth quarter of 2024; this is significantly below the consensus estimate of a $0.24 per share profit. Additionally, the company expects approximately $150 million in adjusted EBITDA, also below the consensus of $261.7 million.

The downward revision reflects a challenging period for the company. President and CEO David B. Burritt indicated that the completion of over $4 billion in growth capital investments, including shipments from the recently completed Big River 2 (BR2) facility in December, represents a “critical milestone” toward their "Best for All® future." However, the company's fourth quarter was impacted by low steel prices and costs associated with the commissioning of BR2.

Despite these pressures, the North America Flat-Rolled segment continues to perform well, benefiting from its strong commercial strategy and diverse product offerings. In Europe, demand and pricing remain weak, and the company has faced production challenges following a fire in the #1 Casting Machine, temporarily increasing its blast furnace operations. The Tubular segment is also encountering difficulties due to a weak pricing environment.

This update sheds light on the challenges United States Steel is facing in a complex market environment, and the company’s stock reflects investors’ concerns regarding the near-term financial outlook.