United States Steel Corporation (NYSE: X) has announced its forecast for the second quarter, revealing that it expects adjusted profits to surpass market expectations. This positive outlook is due to higher prices and consistent demand for its products.
U.S. Steel has been gradually increasing the prices of its products in a bid to counterbalance the impact of rising costs, including those associated with raw materials and energy. This strategy has proven effective, particularly in its flat-rolled and tubular segments, where it has observed strong demand from end-users.
The company provided a projected range for its second-quarter adjusted profit, estimating it to be between $1.81 and $1.86 per share. The mid-point of this range surpasses the average expectation of $1.76 per share held by analysts, according to Refinitiv IBES data.
U.S. Steel also disclosed its plans to repurchase approximately $75 million worth of common stock during the second quarter. This buyback activity falls under the company’s existing authorization of $500 million for stock repurchases.
However, the company’s forecast for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the second quarter is projected to be around $775 million. This figure is slightly lower than the estimates of approximately $792.8 million, as determined by five analysts polled by Refinitiv.