Cleveland-Cliffs (NYSE:CLF) stock is sliding on Tuesday following the release of its earnings report for the third quarter of 2022.
The bad news for CLF stock starts with the company’s diluted earnings per share of 29 cents. That’s nowhere close to the 55 cents per share that Wall Street was predicting for the period. It’s also a major drop from the $2.33 per share reported during the same time last year.
Adding to that, Cleveland-Cliffs reported revenue of $5.7 billion in the third quarter of 2022. Yet again, that’s a miss next to analysts’ estimate of $5.81 billion for the quarter. It’s also a 5% drop year-over-year from $6 billion.
Why Did CLF Miss Estimates?
Lourenco Goncalves, CEO of Cleveland-Cliffs, said the following about the poor earnings report.:
“Our third quarter results were affected by the delayed inventory impact of higher input costs and maintenance activities from prior periods. Now, that all major projects have been concluded and production levels are back to normal, we expect costs to decline meaningfully, into Q4 and further into 2023.”
If all goes well, Cleveland-Cliffs expects its 2022 average selling price to come in at about $1,370 per net ton. The company also notes it expects Steelmaking unit operating costs to decrease at least $80 per net ton in Q4 2022.
CLF stock is down 10.2 in pre-market trading on Tuesday and is down 25.8% year-to-date.
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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.