On Monday, Morgan Stanley (NYSE:MS) maintained a positive outlook on US Steel (NYSE:X), reiterating its Overweight rating and a steady stock price target of $48.00. The firm's stance comes as US Steel's second-quarter 2024 guidance aligns with or surpasses market expectations, contrasting with the lower-than-anticipated guidance from competitors.
US Steel anticipates its adjusted EBITDA for the second quarter of 2024 to be around $425 million, which is consistent with the lower end of the company's previous forecast range of $425-475 million provided during the first-quarter earnings release. This figure is also in line with the Visible Alpha consensus of $424 million and surpasses Morgan Stanley's own projection of $405 million.
The company's adjusted earnings per share (EPS) guidance for the same period, with a midpoint between $0.76 and $0.80, exceeds the Visible Alpha consensus of $0.66 and Morgan Stanley's estimate of $0.58. The higher-than-expected EPS guidance is attributed to greater net interest income than Morgan Stanley had anticipated in its model.
This positive guidance from US Steel indicates a robust performance amidst a competitive industry landscape, where some peers have not met market expectations. The company's outlook reflects a strong operational position as it enters the second quarter of 2024.
In other recent news, Steel Dynamics (NASDAQ:STLD) has announced a decrease in its projected second quarter earnings per share (EPS), falling between $2.64 and $2.68. This figure is below both Citi's estimate of $2.87 and the consensus of $2.98. Despite this, the company anticipates steady shipments and improved earnings from its metals recycling operations due to increased volumes of both ferrous and nonferrous materials.
Analysts at Jefferies have adjusted the price target for Steel Dynamics to $135.00 from the previous $150.00, maintaining a Hold rating on the company's shares. On the other hand, Citi has reaffirmed its Buy rating on Steel Dynamics, maintaining a price target of $160.00.
Steel Dynamics has also repurchased $247 million of its common stock and declared a quarterly cash dividend of $0.46 per common share. These recent developments provide insights into the company's financial performance and potential for growth.
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