What to expect from Cleveland

Cleveland-Cliffs (NYSE:CLF) is scheduled to announce Q2 earnings results on Friday, July 22nd, before market open.

The consensus EPS Estimate is $1.29 (-11.6% Y/Y) and the consensus Revenue Estimate is $6.13B (+22.6% Y/Y).

Steel producer Cleveland-Cliffs (CLF) in late April easy beat expectations for Q1 earnings and revenues, as prices for its steel rose even as spot prices for steel dropped in the quarter.

The company had also said that it expects to set another free cash flow record in 2022.

CLF stock has lost nearly 24% YTD up to its last close, as recession fears dragged steel prices below $900/ton from $1.5K/ton earlier this year.

Industrial metal prices across the board have fallen in Q2, on concerns that interest rate hikes by central banks to combat inflation could in turn slow economic growth and cut demand for metals.

Investors are also concerned about the fall in demand for metals due to China's strict zero-COVID policy and what that means for the country's economic recovery.

Below is a graph comparing the YTD price return for CLF with peers United States Steel (X), Steel Dynamics (STLD), Reliance Steel & Aluminum (RS) and ArcelorMittal (MT):

Over the last 2 years, CLF has beaten EPS estimates 38% of the time and has beaten revenue estimates 38% of the time.

Over the last 3 months, EPS estimates have seen 1 upward revision and 3 downward. Revenue estimates have seen 2 upward revisions and 1 downward.