Cleveland-Cliffs to Post Q3 Earnings: What's in Store for the Stock?

Cleveland-Cliffs Inc. CLF is slated to release third-quarter 2024 results after the closing bell on Nov. 4.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.CLF has a trailing four-quarter earnings surprise of roughly 15.4%, on average. While CLF is expected to have benefited from lower steelmaking unit costs and healthy overall volumes, lower steel prices are likely to have weighed on its performance in the third quarter.CLF stock has declined 15.5% in a year’s time compared with the Zacks Mining – Miscellaneous industry’s 2.2% rise.  Image Source: Zacks Investment ResearchLet’s see how things are shaping up for the upcoming announcement.What Do CLF’s Revenue Estimates Say?The Zacks Consensus Estimate for third-quarter consolidated revenues for Cleveland-Cliffs is currently pegged at $4,763.4 million, which suggests a year-over-year decline of 15%.Factors to Watch For CLF StockCLF is expected to have faced headwinds from a significant downward correction in U.S. steel prices in the third quarter. U.S. steel prices have seen a sharp decline this year due to a slowdown in end-market demand after a strong run in late 2023 that extended into early 2024. The benchmark hot-rolled coil (HRC) prices are down more than 40% since reaching $1,200 per short ton at the start of 2024. The downside has been influenced by a concoction of factors, including a pullback in steel mill lead times, an oversupply of steel exacerbated by increased imports, reduced demand from key industries and economic uncertainties. Sluggish industrial production and construction activities also contributed to the decline. While the recent steel mill price hikes have led to a modest uptick in HRC prices, a significant recovery is not expected over the near term given the weak manufacturing backdrop and demand weakness. Prices are currently hovering around the $700 per short ton level. Weaker selling prices are likely to have impacted CLF’s performance in the quarter to be reported. Our estimate for the average net selling price per net ton of steel products is $1,048, indicating a 6.8% sequential decrease. Nevertheless, healthy overall demand in its end markets is likely to have supported the company’s total volumes in the quarter to be reported. Our estimate for external sales volumes for steel products stands at 4.04 million net tons, suggesting a 1.2% sequential rise.Cleveland-Cliffs is also expected to have benefited from actions to lower steelmaking unit costs in the third quarter. CLF sees a $30 per ton sequential decline in unit costs in the third quarter.Cleveland-Cliffs Inc. Price and EPS Surprise Cleveland-Cliffs Inc. price-eps-surprise | Cleveland-Cliffs Inc. QuoteWhat Our Model Unveils for CLF StockOur proven model does not conclusively predict an earnings beat for Cleveland-Cliffs this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.Earnings ESP: Earnings ESP for CLF is -10.62%. The Zacks Consensus Estimate for the third quarter is currently pegged at a loss of 30 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: CLF currently carries a Zacks Rank #3.Basic Materials Stocks That Warrant a LookHere are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:Agnico Eagle Mines Limited AEM, scheduled to release earnings on Oct. 30, has an Earnings ESP of +5.82% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for AEM’s earnings for the third quarter is currently pegged at 98 cents.DuPont de Nemours, Inc. DD, slated to release earnings on Nov. 5, has an Earnings ESP of +1.00% and carries a Zacks Rank #2 at present.The consensus mark for DD’s third-quarter earnings is currently pegged at $1.03.Kinross Gold Corporation KGC, scheduled to release third-quarter earnings on Nov. 5, has an Earnings ESP of +12.29%.The Zacks Consensus Estimate for Kinross Gold's earnings for the third quarter is currently pegged at 17 cents. KGC currently carries a Zacks Rank #1.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DuPont de Nemours, Inc. (DD): Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks