U.S. Steel soars to nine-month high as steel shipments seen rising this year
U.S. Steel X rallies Friday, +5.2% to a nine-month high after the company topped Q4 earnings and revenue expectations even as results fell compared to a year ago, and guided for higher steel shipments in 2023.
The company forecast flat-rolled steel shipments of 8.5M-9M tons, above the 8.2M-ton analyst consensus estimate, after restarting one of its Mon Valley steel plants in Pennsylvania, citing stronger customer demand.
CEO David Burritt said on the company's post-earnings conference call that he is optimistic about demand but offered a "soft warning" that a "mild recession" could come later this year.
"There are a lot of things around the corner, no doubt about it, that are unknown... perhaps a mild recession in the back-half of 2023, and a strong recovery in 2024," Burritt reportedly said on the call, according to Bloomberg.
Even so, the company said Q1 would mark a "trough" for the market this year.
U.S. Steel X "has a strong balance sheet, which will solidify its position in a recession," Stock Info writes in an analysis published recently on Seeking Alpha.