U.S. Steel (X) Stock Sinks in After-Hours Trading on Earnings Miss

U.S. Steel (X) shares are lower after the company misses analysts' estimates for earnings in the third quarter.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of U.S. Steel (X) - Get Report were falling 8.4% to $11.85 after-hours Tuesday after the steel producer missed analysts' estimates for earnings in the third quarter.

U.S. Steel reported a loss of 70 cents a share in the third quarter, missing analysts' estimates of a loss of 18 cents a share for the quarter. Revenue fell 39% year over year to $2.8 billion for the quarter, compared to analysts' estimates of $2.97 billion.

"Total segment EBIT improved as compared to the second quarter as we continued to take action to address our cost structure," President and CEO Mario Longhi said in a statement. "We remain focused on our Carnegie Way transformation efforts to weather the continued difficult market environment. These efforts will better position our Company to generate stronger operating margins and respond to changing market conditions."

Looking to full year 2015, U.S. Steel said it expects to report EBITDA of about $225 million.

TheStreet Ratings team rates UNITED STATES STEEL CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate UNITED STATES STEEL CORP (X) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: X

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