NEW YORK (TheStreet) -- U.S. Steel (X) stock is plummeting by 13.03% to $6.74 in morning trading on Wednesday, after the company reported its 2015 fourth quarter financial results before the market open.
The steel producer posted an adjusted loss of 23 cents per share, sharply lower than earnings of $1.82 per share for the year-ago quarter.
Revenue plunged by 37% to $2.57 billion, compared to $4.07 billion for the fiscal 2014 fourth quarter.
Analysts had forecast for a loss of 85 cents per share on revenue of $2.53 billion for the most recent quarter.
The company could burn roughly $200 million in cash during 2016 if market conditions don't improve, CEO Mario Longhi warned on the conference call, Bloomberg reports.
Fourth quarter steel prices tumbled 39% to $390 per metric ton for the fourth quarter, compared to the prior year period, according to Bloomberg.
The guidance is "abysmal," Cowen analyst Anthony Rizzuto, wrote in a note, Bloomberg adds. If current market conditions continue, U.S. steel expects EBITDA will break even in 2016, which would significantly miss estimates.
"We are facing significant headwinds and uncertainty in many of the markets we serve but remain focused on continuing to improve our cost structure, developing differentiated solutions for our customers and creating more reliable and agile operating capabilities," Longhi said in a statement.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
U.S. Steel's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: X
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.