United States Steel Corp. (NYSE: X) reported better-than-expected second quarter results this week.
However, sequential revenue declined on a quarter-over-quarter basis. Management explained that weather, higher repairs and maintenance costs, as well as logistical issues, weighed heavily on revenue and earnings.
The company reported GAAP EPS of $(0.12) for the quarter. Analysts on a consensus basis were expecting GAAP EPS to come in at $(0.29) for the current quarter. The company beat on EPS by $.17.
This directly resulted in a massive move in Tuesday's after-hour trading session.
U.S. Steel President and CEO Mario Longhi offered some upbeat guidance on the next quarter.
“We expect operating income for our reportable segments and other businesses to increase significantly over the second quarter," he said, "as we return to normal operating levels.”
The absence of weather-related impact, along with operational challenges specific to the second quarter, will have a $150 million favorable impact, which comes from reduced repairs and maintenance costs along with increased shipments.
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