U.S. Steel: Short-Term Troubles Are Not Going Anywhere

U.S. Steel is an integrated steel maker with a majority of its operations in North America and Eastern Europe. It has a steel making capacity of over 31 million tons. The company has three main reporting segments: Flat-rolled Products, Tubular Products and U.S. Steel Europe (USSE). The flat-rolled segment accounts for almost two-thirds of the company's revenue.

Based on third quarter results, lower than expected Q4 guidance and weaker tubular outlook, we maintain our neutral rating on United States Steel Corporation (X). The largest producer of steel in United States by volume, U.S. Steel reported third quarter adjusted EPS of $0.01, with a domestic flat rolled segment and European segments performing better than expectations. However, it provided weak Q4 guidance for all its reporting segments. Read more about USS.