Shares of steelmaker Cleveland-Cliffs (NYSE:CLF) slipped in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at $0.18, which was below analysts’ consensus estimate of $0.22. Sales decreased by 1.9% year-over-year, with revenue hitting $5.2 billion. This missed analysts’ expectations by $130 million.
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For the quarter, the company reported steel shipments totaling 3.9 million net tons. It also posted an adjusted EBITDA of $414 million, which was a 70% year-over-year increase. Furthermore, Cleveland-Cliffs bought back 30.4 million shares and reduced its total share count by 6%.
Looking forward, management is forecasting a $30 per net ton reduction in steel unit costs for 2024. Additionally, Cliffs expects its capital expenditures to be between $675 and $725 million and steel shipment volumes to come in at 16.5 million net tons.
Is CLF Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on CLF stock based on one Buy, zero Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 45% rally in its share price over the past six months, the average CLF price target of $21.39 per share implies 2.52% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
