Steel Stocks’ Q1 Earnings Slated On Apr 25: X, ATI, AKS, TX

A number of steel companies are among a barrage of stocks that are slated to report their quarterly numbers on Apr 25.As per the Zacks Industry classification, the steel industry is grouped under the broader Basic Materials sector. Based on the Earnings Preview as of Apr 21, 15% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies increased by a solid 41.9% from the same period last year on 12.9% higher revenues.

The Basic Materials sector is one of the only three sectors that are projected to witness double-digit earnings growth in the first quarter. Overall earnings for the sector are projected to rise 11% while revenues are expected to increase 2.1%.

Steel market conditions have improved of late, driven by favorable developments on steel trade cases in the recent past and improved prices. The industry also continues to benefit from the sustained healthy demand in the automobile and construction sectors. The steel industry is also expected to be one of the key beneficiaries of Donald Trump’s presidency. President Trump’s call for $1 trillion of new infrastructure spending is likely to give the steel industry a shot in the arm given the expected increase in steel consumption.

Let’s take a peek at four steel companies that are gearing up to report their first-quarter results on Apr 25.

United States Steel Corporation (X – Free Report), which will report its results after the bell, is expected to come up with a positive earnings surprise as it carries a Zacks Rank #1 (Strong Buy) and an Earnings ESP of +18.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

U.S. Steel beat the Zacks Consensus Estimate in two of the trailing four quarters, while missed in the other two with an average positive surprise of 630.61%. U.S. Steel is focusing on improving its assets and operating performance and driving innovation that creates differentiated solutions for its customers. The company is also aggressively pursuing actions to improve its cost structure through its “Carnegie Way” program that should lend support to its first-quarter results. (Read more: U.S. Steel Q1 Earnings Preview: Stock Poised to Beat?)