US Steel Earnings on the Horizon

S&P 500 (NYSE:SPY) component US Steel (NYSE:X) will unveil its latest earnings on Tuesday, July 31, 2012. United States Steel is an integrated steel producer of flat-rolled and tubular products.

US Steel Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 50 cents per share, a decline of 62.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 64 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 53 cents during the last month. For the year, analysts are projecting profit of $1.52 per share, a spike from a loss of $1.11 last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 67 cents per share against a mean estimate of profit of 49 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 67 cents.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $219 million ($1.52 a share) from a loss of $86 million (60 cents) a year earlier, but beat analyst expectations. Revenue rose 6.3% to $5.17 billion from $4.86 billion.

Stock Price Performance: Between April 30, 2012 and July 27, 2012, the stock price fell $9.12 (-32.34%), from $28.20 to $19.08. The stock price saw one of its best stretches over the last year between March 12, 2012 and March 19, 2012, when shares rose for six straight days, increasing 19.9% (+$5.25) over that span. It saw one of its worst periods between July 29, 2011 and August 8, 2011 when shares fell for seven straight days, dropping 27.8% (-$11.13) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 2.5% in revenue from the year-earlier quarter to $4.99 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.4% in the second quarter of the last fiscal year, 13% in the third quarter of the last fiscal year and 12.1% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With five analysts rating the stock as a buy, two rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.59 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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