Categories: Business

Cleveland-Cliffs Q3 preview: Will increased auto demand spur earnings beat?

[ad_1]

PhonlamaiPhoto/iStock by way of Getty Pictures

Cleveland-Cliffs (NYSE:CLF) is scheduled to announce Q3 outcomes on Tuesday, Oct. 25, earlier than market open.

Consensus EPS estimate is $0.51 and consensus income estimate is $5.79B (-3.5% Y/Y).

During the last 2 years, CLF has crushed EPS estimates 25% of the time and income estimates 38% of the time.

During the last 3 months, EPS estimates have seen 4 downward revisions. Income estimates have seen 1 upward revision and three downward.

GLJ Analysis double downgraded Cleveland-Cliffs (CLF) as Q3 earnings estimates are too optimistic. Whereas the Road expects Q3 EBITDA to be ~$1B, the brokerage guided for ~$820M, based mostly on the agency’s implied steering for flattish manufacturing volumes and working bills, and decrease Q/Q common promoting costs.

SA contributor Leo Nelissen stated regardless of headwinds, Cleveland-Cliffs (CLF) is holding up higher than anticipated due to inside provide chain resilience, fixed-price contracts, low leverage and rebounding auto manufacturing.

Q2 recap:

Shares of the steelmaker fell after its Q2 earnings missed estimates, weighed by increased working prices and provide chain points. CEO Lourenco Goncalves performed down the specter of a recession and better charges hurting auto demand, saying provide chain issues and COVID-related manufacturing outages led to pent-up demand for vehicles.

Current information:

  • Mesabi Belief (MSB) stated there can be no distribution this month as a consequence of uncertainties brought on by Cleveland-Cliffs’ (CLF) transfer to increase idling of operations at Northshore Mining.
  • Cleveland-Cliffs’ (CLF) new 4-year labor cope with the United Steelworkers was ratified, with base wages anticipated to rise 20% in the course of the contract interval.
  • The agency’s shares possible gained after better-than-expected Q3 manufacturing information from GM and Ford because it has heavy publicity to the automotive market.
  • The steelmaker reportedly raised present spot market base costs for all carbon metal sizzling rolled, chilly rolled and coated metal merchandise by a minimal of $75/ton.
[ad_2]
Source link
linda

Recent Posts

Top Demolition Services in Tampa, Florida

When it comes to demolition services in Tampa, Florida, there's a lot to consider. Whether…

1 day ago

Maximizing Efficiency in Construction Staffing Solutions

Hey there! If you've ever found yourself tangled in the complex web of staffing for…

3 days ago

How to Evaluate and Select the Right Content Creator Partners for Your Brand

In the rapidly evolving digital marketing landscape, finding content creators who authentically represent your brand…

1 week ago

Safety Tips When Hiring Demolition Contractors

Before diving into the specifics, it's important to understand what a demolition contractor does. These…

1 week ago

Essential Guide to Windshield Replacement in Arlington

Hey there! If you're cruising around Arlington and suddenly find your windshield cracked or shattered,…

2 weeks ago

Top Asphalt Paving Companies in Indiana

Hello there! If you're searching for the top asphalt paving companies in Indiana, you're in…

3 weeks ago