United States Steel Corporation Forecast Update

Investing.com — United States Steel Corporation (NYSE:X) shares fell 5% after the company released its updated fourth quarter guidance, which disappointed market expectations.

The steelmaker projected fourth quarter 2024 adjusted net earnings per diluted share to range between a loss of $0.29 to $0.25, significantly below the consensus estimate of $0.24 earnings per share. Additionally, U.S. Steel anticipates adjusted EBITDA of approximately $150 million, missing the consensus of $261.7 million.

This downward revision reflects a challenging period for the company. President and CEO David B. Burritt noted a positive milestone towards their Best for All® future, with over $4 billion in growth capital investments made, including the start of shipments from the newly completed Big River 2 (BR2) facility in December. However, the fourth quarter has been affected by lower steel prices and costs linked to the BR2 ramp-up.

In contrast, the North American Flat-Rolled segment continues to excel due to its strong commercial strategy and diverse product mix. In Europe, demand and pricing remain weak, and the company has faced production challenges following a fire at the #1 Caster, which has temporarily increased blast furnace operations. The Tubular segment is also struggling with a weak pricing environment.

This update reveals the difficulties faced by United States Steel as it navigates a complex market landscape, with investor concerns reflected in the company's stock performance.