NEW YORK (TheStreet) -- Shares of United States Steel (X) - Get Report are soaring by 10.37% to $25.33 on higher than usual volume in mid-morning trading on Wednesday, after the company posted a narrower net loss than expected and raised its full year guidance.
So far today, 17.24 million shares have traded hands, compared to the average of 14.10 million.
The Pittsburgh-based company reported a loss of 31 cents per share, compared to analysts' estimates of a loss of 49 cents per share.
The steel maker's revenue dropped by 11% year-over-year to $2.58 billion for the period, compared with analysts' expectations of $2.68 billion.
The lower than expected net loss is a result of pricing increases, as well as improving European operations, which reported its best quarter in almost eight years.
"Our improving cost structure continues to drive increases in our margins and the recent increases in steel prices started to be reflected in our results," U.S. Steel CEO Mario Longhi said.
U.S. Steel is expecting $850 million in adjusted EBITDA for the year, compared to its April outlook of about $400 million. The company is looking for 2016 net earnings of $50 million, or 34 cents per share.
U.S. Steel shares have nearly tripled since the beginning of the year, while the Standard & Poor's 500 index has climbed 6 percent.
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate UNITED STATES STEEL CORP as a Sell with a ratings score of D. This is driven by a few notable 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 deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here: X