US Steel Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component US Steel (NYSE:X) will unveil its latest earnings on Tuesday, October 30, 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 the company to break even after the company reported net income of 72 cents per share in the year-earlier quarter. During the past three months, the average estimate has moved down from 17 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 2 cents during the last month. For the year, analysts are projecting profit of $1.42 per share, a spike from a loss of $1.11 last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 69 cents per share against a mean estimate of profit of 50 cents, and the quarter before, the company exceeded forecasts by 18 cents with net income of 67 cents versus a mean estimate of profit of 49 cents.

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A Look Back: In the second quarter, profit fell 54.5% to $101 million (62 cents a share) from $222 million ($1.33 a share) the year earlier, but exceeded analyst expectations. Revenue fell 2% to $5.02 billion from $5.12 billion.

Stock Price Performance: From September 26, 2012 to October 24, 2012, the stock price rose $2.34 (12.1%), from $19.33 to $21.67. It saw one of its worst periods between August 21, 2012 and August 30, 2012 when shares fell for eight straight days, dropping 15.5% (-$3.54) over that span. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 11.2% (+$2.36) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 8.7% in revenue from the year-earlier quarter to $4.64 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 13% in the third quarter of the last fiscal year, 12.1% in the fourth quarter of the last fiscal year and 6.3%in the first quarter before dropping in the second quarter.

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $101 million in the second.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.7 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.

Analyst Ratings: There are mostly holds on the stock with nine of 14 analysts surveyed giving that rating.

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

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