Cleveland-Cliffs Inc. (NYSE:CLF) is a major player in the mining and steel industry, primarily focusing on producing iron ore pellets and steel products. The company is set to release its fourth-quarter 2024 earnings on February 24, 2025. Wall Street anticipates a quarterly loss of $0.64 per share, with revenue projected at $4.46 billion.
Historically, CLF has exceeded earnings expectations, with an average surprise of 5.6% over the past four quarters. However, the upcoming quarter presents challenges due to reduced steel prices and weaker volumes. Analysts from Zacks Investment Research expect a quarterly loss of $0.58 per share, marking a significant year-over-year decline of 1060%.
Revenue projections for the fourth quarter are set at $4.31 billion, a 15.6% decrease from the previous year. This decline is reflected in the company's stock performance, which has dropped by 38.7% over the past year, compared to a 5.3% decline in the Zacks Mining – Miscellaneous industry. The consensus earnings per share (EPS) estimate has been revised downward by 22.9% over the past 30 days.
Cleveland-Cliffs' financial metrics highlight its current challenges. The company has a negative price-to-earnings (P/E) ratio of -11.50, indicating ongoing losses. The price-to-sales ratio is 0.28, and the enterprise value to sales ratio is 0.47, reflecting its valuation relative to revenue. Despite these challenges, the debt-to-equity ratio is 0.55, showing moderate debt levels, and the current ratio is 1.85, indicating a strong ability to cover short-term liabilities.
