U.S. Steel results came in at a loss of 25 million or 17 cents a share on revenue of 4.7 billion. Allan Edwards co-Ceo of The Markets Are Open stated that the top line numbers is what needs to be focused on, "the top line (revenue) in Q2 was 500 million dollars higher than Nucor which has nearly double the market capitalization" scoffed Edwards. U.S. Steel shares are currently down 4% in premarket trading, which is the time when traders place trades before the official open of Wall Street.
U.S. Steel also boosted its quarter 3 guidance saying for the first time in over a year that the company will be profitable. Q3 will likely end the string of 6 unprofitable quarters beginning in the first quarter of 2009. Wall Street was expecting U.S. Steel to earn in the current quarter 65 million dollars adjusting for currency losses, and earnings came in at approximately 45 million for the current quarter if you adjust for currency losses. Edwards continued "I do not know which rogue analysts expected U.S. Steel to have 65 million profit in the quarter, but U.S. Steel's results were in line with my expectations."
Edwards finished "I expect U.S. Steel to earn 82 cents a share in Q3 on net income of 120 million, and going forward I continue to like the steel industry in America, in essence today U.S. Steel just put the steel industry in America back on track!"
No comments:
Post a Comment