Cleveland-Cliffs said it anticipates revenue of $2.2 billion to $2.3 billion, quadrupling from the year earlier total and besting the FactSet analyst consensus of $1.97 billion. The company also estimated adjusted EBITDA at $280 to $290 million for the latest quarter, a six-year high and up about 150% from last year.
The company’s stock was at $17.39, up 6.1%, in premarket trading Monday. It has soared 83% over the last three months through Friday amid optimism about economic recovery. That easily tops the 11% gain for the S&P 500.
“With the completion of our second transformational acquisition creating the largest flat-rolled steel producer in North America and the start-up of the most modern and environmentally friendly direct reduction plant in the world, Cliffs enters 2021 with the right size, the right product mix, and the right customer mix for the business environment in which we operate,” CEO Lourenco Goncalves said in a statement.
“Our strong fourth-quarter results are just a sample of what we should be able to accomplish in 2021, when the contributions of the recent acquisition of ArcelorMittal USA and the sales of HBI to third-party customers will be fully reflected in the numbers.”
Further, “With the backdrop of a resilient steel pricing environment and the growing number of steel companies competing for an increasingly scarce scrap supply in 2021 and beyond, Cleveland-Cliffs will continue to benefit from our differentiated business model with self-sufficiency in pellets and HBI,” Goncalves said.