What's Going On With Cleveland-Cliffs Stock Tuesday?

Cleveland-Cliffs Inc CLF shares are trading higher Tuesday after the company reported strong quarterly results.

• Q3 Revenue: $5.61 billion beat estimates of $5.58 billion
• Q3 EPS: 54 cents beat estimates of 43 cents

Steel shipments came in at 4.1 million net tons in the third quarter. Cash flow from operations totaled $767 million, while free cash flow reached $605 million. 

Cleveland-Cliffs said it reduced its net debt to $3.4 billion in the quarter and finished the quarter with liquidity of $4.4 billion. 

"With underlying demand that is still strong and depleted inventories among service centers, we were able to successfully bring buyers off the sidelines with our price increase announcements. We expect that in Q4 we will see the end of the UAW strike and more normal buying patterns from service centers," said Lourenco Goncalves, chairman, president and CEO of Cleveland-Cliffs. 

Outlook: Cleveland-Cliffs said its previously announced cost objectives remain on track. The company anticipates another $15 per net ton reduction in steel unit costs between the third and the fourth quarter and continued cost reductions next year. 

Cleveland-Cliffs also lowered its full-year capital expenditures guidance to $670 million and noted that its working capital is expected to provide a significant benefit to free cash flow in the fourth quarter.

See Also: General Motors Q3: Earnings Beat, 5.4% Revenue Growth & More

CLF Price Action: Cleveland-Cliffs shares were up 2.92% at $14.79 at the time of publication, according to Benzinga Pro.

Photo: Janno Nivergall from Pixabay.