President Donald Trump's recent announcement to increase tariffs on imported steel and aluminum from 25% to 50%, effective June 4, 2025, has significantly influenced U.S. metal stocks. The rise in tariffs has strengthened U.S. metal producers by decreasing foreign competition and increasing domestic prices.
Recently, Zacks.com users have been paying close attention to Cleveland-Cliffs (CLF). This makes it worthwhile to examine what the stock has in store.
Recently, Zacks.com users have been paying close attention to Cleveland-Cliffs (CLF). This makes it worthwhile to examine what the stock has in store.
The stock market is usually a pretty efficient mechanism for pricing in an economy's future expectations. In the case of the S&P 500, its mere size and liquidity usually give investors a pretty good gauge of where the future of the United States economy might be headed.
Cleveland-Cliffs stock has underperformed, but I remain optimistic about a recovery driven by automotive resurgence, asset optimization, and the expiration of a detrimental slab contract. Q1 results were disappointing due to low steel prices and a challenging supply agreement, but cost-cutting measures and improved HRC prices could boost future EBITDA. By 2026, the combination of strategic initiatives could uplift annual EBITDA by $1.05-$1.3 billion, with a potential price target of $8.7/share.
Although the revenue and EPS for Cleveland-Cliffs (CLF) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Cleveland-Cliffs Inc. (NYSE:CLF ) Q1 2025 Earnings Conference Call May 8, 2025 8:30 AM ET Company Participants Lourenco Goncalves - Chairman, President and CEO Celso Goncalves - EVP and CFO Conference Call Participants Nick Giles - B. Riley Securities Albert Realini - Jefferies Lawson Winder - Bank of America Alex Hacking - Citigroup Bill Peterson - JPMorgan Timna Tanners - Wolfe Research Carlos De Alba - Morgan Stanley Operator Good morning, ladies and gentlemen.
Cleveland-Cliffs (CLF) shares tumbled 17% Thursday, a day after the steelmaker announced it was cutting back on production and capital spending in an effort to improve operations.
Weaker average selling prices and the underperformance of non-core assets weigh on CLF's performance in the first quarter.
Cleveland-Cliffs (CLF) came out with a quarterly loss of $0.92 per share versus the Zacks Consensus Estimate of a loss of $0.78. This compares to earnings of $0.18 per share a year ago.
Chief Executive Lourenco Goncalves said the steelmaker will make a higher volume commitment with its automotive customers.
CLF is expected to have benefited from lower costs and higher volumes amid pricing headwinds in Q1.