Jefferies Previews 2Q Earnings for United States Steel Corporation

Jefferies has published a research report on United States Steel Corporation X maintaing the rating and price target while previewing 2Q earnings. In the report, Jefferies wrote, "Following X's modest miss in 2Q11 and lower guidance for 3Q11, we maintain our Hold rating on the shares. Though results were encouraging relative to recent historical trends, we continue to see X disadvantaged by its high cost structure in the below normalized demand environment expected in the coming years and see more attractive risk-reward elsewhere in our steel coverage universe. Results Overview: X reported 2Q11 EPS of $1.12 after removing a +$0.21 FX gain. Adj. results fell short of our $1.18 estimate and consensus of $1.21 per share. Vs. our model, X missed forecast primarily due to weaker than expected performance in Europe (USSE), which accounted for -$17M of the -$22M total shortfall in consolidated EBIT relative to expectations. Outside of USSE, results fell modestly short of expectations in NAFR and -$1M in Tubular." Jefferies rated United States Steel Corporation a HOLD with a price target of $45.00. United States Steel Corporation closed Tuesday at $40.62.