Cleveland-Cliffs Inc.’s CLF third-quarter 2024 adjusted loss was 33 cents per share. This compares unfavorably with adjusted earnings of 54 cents in the prior-year quarter. Loss per share was wider than the Zacks Consensus Estimate of a loss of 31 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues fell 18.5% to $4,569 million in the quarter from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $4,754.4 million.

Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise

Cleveland-Cliffs Inc. price-consensus-eps-surprise-chart | Cleveland-Cliffs Inc. Quote

CLF’s Operational Highlights

The company reported Steelmaking revenues of $4,419 million for the third quarter, down around 18.8% year over year. 

The average net selling price per net ton of steel products was $1,045 in the quarter, down around 13.1% year over year. It missed our estimate of $1,048. 

External sales volumes for steel products were roughly 3.8 million net tons, down around 7.3% year over year. It lagged our estimate of 4 million net tons.

CLF’s Financial Position

Cleveland-Cliffs ended the third quarter with cash and cash equivalents of $39 million, up around 25.8% year over year. Long-term debt increased 9.1% year over year to $3,774 million.

Net cash used in operating activities was $84 million in third-quarter 2024.

CLF’s Outlook

CLF said it has set a much lower capital budget for 2025, even after accounting for strategic projects that are expected to increase annual EBITDA by more than $600 million once finished. Furthermore, decreasing coal costs will result in a $70 million benefit next year versus 2024. 

Steel demand is expected to rebound in early 2025 owing to a combination of economic and political factors. Stelco's assets and cost reductions position CLF well to benefit from this recovery, allowing it to quickly repay acquisition debt while maintaining healthy free cash flow.

Cliffs reduced its full-year 2024 capital expenditures target by $50 million to $600-$650 million from $650-$700 million expected earlier. 

Cliffs also forecast standalone (excluding Stelco) full-year 2025 capital expenditures of around $600 million, which includes strategic expansion projects in Middletown, Butler and Weirton. 

Stelco's sustained capital expenditure is estimated to be around $100 million per year.

CLF’s Price Performance

Shares of CLF are down 32% in the past year compared with a 0.2% rise of its industry.

Image Source: Zacks Investment Research

CLF’s Rank & Key Picks

CLF currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation IAG, Sandstorm Gold Ltd. SAND and Barrick Gold Corporation GOLD.

IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sandstorm Gold is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for SAND’s third-quarter earnings is pegged at 3 cents. SAND has rallied around 36% in the past year. Sandstorm Gold carries a Zacks Rank #2.

Barrick Gold is slated to report third-quarter results on Nov. 7, before the opening bell. The consensus estimate for Barrick Gold’s third-quarter earnings is pegged at 33 cents. GOLD, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 21.2%.