U.S. Steel (X) Stock Sinks on Earnings Miss
NEW YORK (TheStreet) -- U.S. Steel Corp. (X) - Get Report stock is retreating 13.52% to $11.19 in mid-morning trading on Wednesday after the company reported lower than expected financial results for the third quarter of 2015.
After the market close on Tuesday, the steel company reported a loss of 70 cents per share for the quarter ended September 30, down from earnings of $2.16 per share for the same period last year.
Revenue fell to $2.83 billion for the latest quarter from $2.9 billion last year because of higher imports and a weak oil market that drove down sales of tubular goods.
Analysts surveyed by Thomson Reuters had estimated a loss of 20 cents per share on $2.95 billion in revenue for the latest quarter.
U.S. Steel now expects a significant decline in shipments and realized prices than previously anticipated for the year.
Cost cutting efforts are not expected to offset unfavorable market factors such as imports, lower steel prices and volatile oil prices, the company said in a statement.
The weak quarter led to U.S. Steel stock being downgraded to "hold" from "buy" at Deutsche Bank, which maintained a $25 price target.
Separately, 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
data by
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.