U.S. Steel (NYSE:X) news for Wednesday concerning its guidance update for the second quarter of 2020 has X stock melting down.
The bad U.S. Steel news starts out with it saying it expects adjusted losses per share for Q2 to be $3.06. That will easily have the company missing Wall Street’s adjusted per-share losses estimate of $1.75 for the quarter. It would also be a massive decline from its adjusted EPS of 45 cents from the same time last year.
The guidance from U.S. Steel also has it expecting adjusted EBITDA for the second quarter of the year of -$315 million. It also continues to expect liquidity requirements for the year to reach $700 million.
David Burritt, president and CEO of U.S. Steel, said this about the news.
“As expected, the second quarter is being significantly impacted by the effects of COVID-19 and the expected nonrecurring costs associated with a significant portion of our steelmaking operations being idled in the quarter. As we mentioned on our first quarter earnings call, we expect the second quarter to mark the trough for the year.”
U.S. Steel hasn’t revealed when it will release its earnings report for the second quarter of the year. However, if it follows historical releases, the company is likely to drop its Q2 earnings report on Aug. 1, 2020.
X stock was down 10.7% as of Wednesday afternoon and is down 3.2% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.