Steelmaker United States Steel Corporation (
) on Tuesday posted a surprise second quarter loss, as adjusted
results missed analyst expectations, sending its shares lower in
The Pittsburgh-based company reported a second quarter net loss
of $25 million, or 17 cents per share, compared with a loss of $392
million, or $2.92 per share, in the year-ago period. Excluding
one-time items, its adjusted profit was 45 cents per share.
Sales more than doubled from last year, to $4.68 billion.
On average, Wall Street analysts expected a much higher adjusted
profit of 63 cents per share, albeit on slightly lower revenue of
U.S. Steel shares plunged $1.94, or -4%, in premarket trading
The Bottom Line
We had removed shares of U.S. Steel (
) from our recommended list on Apr.19, 2010, when the stock was
trading at $59.81. The company has a .41% dividend yield, based on
last night's closing stock price of $48.89. The stock has technical
support in the $40 price area. If the shares can firm up, we see
overhead resistance around the $55 price level. We would remain on
the sidelines for now.
United States Steel Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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