Cleveland-Cliffs (NYSE:CLF) stock is climbing higher on Friday following the release of the steel producer’s earnings report for the first quarter of 2022.
Starting off that earnings report is adjusted earnings per share of $1.71. That’s a positive for CLF stock as it smashes Wall Street’s adjusted EPS estimate of $1.40 for the period. It’s also a massive jump over the 7 cents per share reported during the same time last year.
Another positive for CLF stock comes from the company’s revenue of $6 billion. Yet again, this comes in well above the $5.46 billion that analysts’ were looking for. It’s also a major increase over the $4 billion reported in the first quarter of 2021.
Lourenco Goncalves, chairman, president and CEO of Cleveland-Cliffs, said this in the earnings report boosting CLF stock higher today.
“Our first quarter results are a clear indication of the success we have been able to achieve as we renewed our fixed-price contracts last year. Despite the decline in spot prices for steel from Q4 to Q1 and its lagged impact on our results, we were able to continue to deliver strong profitability. As this trend persists, we expect to set another free cash flow record in 2022.”
On top of all of this, Cleveland-Cliffs also revealed an updated outlook for 2022. This has it expecting its average selling price to come in at $1,445 per net ton. That’s a $220 jump from its previous guidance of $1,225 per net ton. It attributes this to “higher than expected prices on renewals of fixed-price contracts,” and other factors.
CLF stock is up 4.7% as of Friday morning and is up 43.1% since the start of the year.
Investors looking for more recent stock market news will want to keep reading!
We’ve got all the latest stock news that traders need to know about for Friday. That includes what has Verizon (NYSE:VZ) stock dropping, why Nvidia (NASDAQ:NVDA) stock is on the move, as well as what has Snap (NYSE:SNAP) stock rising. You can read all about these matters at the links below!
More Stock Market News for Friday
- Why Is Verizon (VZ) Stock Down Today?
- Is NVDA Stock a Buy Right Now? 3 Analysts Weigh In on Nvidia Prices.
- Why Is Snap (SNAP) Stock in the Spotlight Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.