Cleveland-Cliffs (NYSE:CLF) Shares Gap Up After Strong Earnings

Key Points

• Cleveland-Cliffs shares jumped 12.5%, opening at $14.20 after the company reported adjusted earnings of $0.28 per share, beating the $0.24 analyst consensus. Quarterly revenue rose 18.5% year over year to $5.61 billion, though it slightly missed one revenue estimate.
• Higher steel prices and shipment volumes supported results, with adjusted EBITDA reaching approximately $612 million and steel shipments totaling 4.2 million net tons. Management also expressed optimism about 2027, with tariffs potentially benefiting domestic steel producers.
• Despite the earnings beat, analyst sentiment remains mixed: the stock carries a consensus “Hold” rating with an average price target of $12.45, while the company continues to face negative margins and elevated leverage.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) gapped up prior to trading on Monday following a stronger than expected earnings report. The stock had previously closed at $12.12, but opened at $14.20. Cleveland-Cliffs shares last traded at $13.17, with a volume of 13,228,994 shares changing hands.

The mining company reported $0.28 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.04. The firm had revenue of $5.61 billion during the quarter, compared to analysts' expectations of $5.69 billion. Cleveland-Cliffs had a negative net margin of 4.56% and a negative return on equity of 13.37%. The business's quarterly revenue was up 18.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.51) earnings per share.

Trending Headlines about Cleveland-Cliffs

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Profitability significantly improved. Cleveland-Cliffs reported third-quarter GAAP net income of approximately $165 million, or $0.26 per diluted share, compared with a loss in the prior-year period. Adjusted earnings of $0.28 per share exceeded the $0.24 analyst consensus estimate. Cleveland-Cliffs Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Higher steel prices and volumes supported results. Revenue reached roughly $5.6 billion, up 18.5% year over year, while steel shipments totaled 4.2 million net tons. Adjusted EBITDA of $612 million also exceeded Wall Street expectations of about $601 million. Cleveland-Cliffs Expects 2027 Will Be a Very Good Year
• Positive Sentiment: Investors responded favorably to the company’s outlook. Management reportedly expects 2027 to be a strong year, with tariffs potentially providing additional support for domestic steel producers. This outlook helped reinforce expectations for improved pricing and earnings. Cleveland-Cliffs Stock Jumps on Rosy Outlook
• Neutral Sentiment: Revenue was solid but slightly below one estimate. Reported revenue of $5.61 billion trailed the $5.69 billion consensus cited by MarketBeat, although other data showed a modest revenue surprise. The company remains challenged by a negative net margin and elevated leverage, which could limit the stock’s upside if steel prices weaken. Cleveland-Cliffs Earnings Results

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Barclays restated an "underweight" rating and issued a $11.00 price target on shares of Cleveland-Cliffs in a research note on Monday. JPMorgan Chase & Co. reduced their price objective on Cleveland-Cliffs from $13.00 to $12.00 and set a "neutral" rating on the stock in a research note on Friday, October 9th. Wells Fargo & Company upgraded Cleveland-Cliffs from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $12.00 to $14.00 in a report on Tuesday, October 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cleveland-Cliffs in a report on Tuesday, July 21st. Finally, UBS Group set a $13.00 target price on Cleveland-Cliffs in a research note on Monday, September 7th. Three equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $12.45.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Fortitude Family Office LLC raised its holdings in shares of Cleveland-Cliffs by 245.2% in the 3rd quarter. Fortitude Family Office LLC now owns 2,831 shares of the mining company's stock valued at $31,000 after purchasing an additional 2,011 shares in the last quarter. Johnson Financial Group Inc. acquired a new position in shares of Cleveland-Cliffs during the second quarter worth $30,000. Center for Financial Planning Inc. grew its stake in shares of Cleveland-Cliffs by 119.0% during the first quarter. Center for Financial Planning Inc. now owns 3,322 shares of the mining company's stock worth $28,000 after purchasing an additional 1,805 shares in the last quarter. IFP Advisors Inc grew its stake in shares of Cleveland-Cliffs by 39.5% during the second quarter. IFP Advisors Inc now owns 5,127 shares of the mining company's stock worth $48,000 after purchasing an additional 1,453 shares in the last quarter. Finally, Global Retirement Partners LLC purchased a new position in Cleveland-Cliffs in the second quarter valued at $72,000. Hedge funds and other institutional investors own 67.68% of the company's stock.

Cleveland-Cliffs Stock Up 12.5%

The company has a quick ratio of 0.63, a current ratio of 1.89 and a debt-to-equity ratio of 1.32. The stock has a market cap of $7.78 billion, a PE ratio of -8.41, a price-to-earnings-growth ratio of 5.73 and a beta of 2.09. The firm has a fifty day moving average of $12.01 and a 200 day moving average of $11.25.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is an integrated steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, including the mining and processing of iron ore, production of iron ore pellets, and manufacturing of finished steel products.

Cleveland-Cliffs primarily produces flat-rolled carbon steel, including hot-rolled, cold-rolled and galvanized products, as well as coated and specialty steel. Its products are used in automotive manufacturing, construction, infrastructure, appliances, machinery and other industrial applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.