U.S. Steel Posts Q2 Loss as Adjusted Results Miss View (X)

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Steelmaker United States Steel Corporation ( X ) on Tuesday posted a surprise second quarter loss, as adjusted results missed analyst expectations, sending its shares lower in premarket trading.

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 $4.63 billion.

U.S. Steel shares plunged $1.94, or -4%, in premarket trading Tuesday.

The Bottom Line
We had removed shares of U.S. Steel ( X ) 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 ( X ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: X

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