Cleveland-Ciffs CLF Stock News

Cleveland-Cliffs Inc (NYSE: CLF) is making a strong run in the market today, trading on gains of more than 5% early on. The gains come after the company announced positive financial results for the second quarter. Here’s what’s happening:

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CLF Announces Financial Results

In a press release issued early this morning, Cleveland-Cliffs announced its financial results for the second quarter. Not only did the company beat earnings expectations, revenue was a big hit as well. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, CLF did overwhelmingly well. During the quarter, analysts expected that the comapny would generate earnings of $0.52 per share. However, the company actually produced earnings of $0.63 per share. While earnings fell year over year from $0.76 per share, the analyst beat proved to excite investors. As a result, the company generated an earnings surprise of 21.15%.
  • Revenue – Revenue also proved to be a big hit for the company. During the quarter, the company generated revenue of $743.20 million, beating expectations by more than 20%. This figure climbed year over year from $714.30 million reported in the quarter one year ago.

Management Commentary

In a statement, Lourenco Goncalves, Chairman, President and CEO at CLF, had the following to offer:

The New Normal in the global iron ore market has started to influence our results, offsetting weak steel prices in the United States during the second quarter. While the New Normal in iron ore is here to stay, the absurdly low prices for steel in the United States are just a temporary thing, and we should see higher steel prices going forward. On top of that, our Toledo plant construction is ahead of schedule, and we now expect to be producing HBI in less than one year.

It has become abundantly clear that the market advantage has shifted favorably towards responsible producers of environmentally friendly high-grade iron units, and only environmentally responsible players such as Cleveland-Cliffs will be rewarded by investors in the near future. Knowing that, we will continue to center and expand our proven strategy around this premise.

More Bright Skies Ahead

Based on the strong earnings report, it’s clear that Cleveland-Cliffs is headed in the right direction. Not only is revenue headed in the right direction, the company is making strides when it comes to earnings.

All in all, the positive results are the result of the company’s work to expand production. While CLF is at the mercy of spot prices in the commodities market, improving production, and expectations that commodity prices will head up ahead, suggests that the stock has more room for growth ahead.

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