U.S. Steel Met by Skepticism as It Recasts Its Profit Guidance
- Steelmaker preliminary third-quarter loss will be 20-26 cents
- ‘You have to question the motive,’ Keybanc’s Gibbs says
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U.S. Steel Corp. gave a third-quarter loss estimate that was better than its guidance just three weeks earlier, helped by a gain from claims arising out of a supplier’s bankruptcy.
Analysts weren’t impressed. Shares were the second-worst performer on the S&P gauge of steelmakers. The stock has slumped 15% since the start of the month when it announced it’s paying $700 million to buy almost half of its high-tech rival Big River Steel, a purchase that will be funded by a lending facility.