Cleveland-Cliffs (CLF) Raises Financial Outlook for Q2 & FY21

Cleveland-Cliffs Inc. CLF raised its financial guidance for the second quarter and full-year 2021 based on its recent 2021 financial forecast.

The company now expects second-quarter and full-year adjusted EBITDA of $1.3 billion and $5 billion, respectively. This compares to the prior estimates of roughly $1.2 billion for the second quarter and around $3.5 billion for the full year.

The forecast for full-year is based on current contractual business and the conservative assumption that the US HRC index price averages $1,175 per net ton for the rest of the year.

Shares of Cleveland-Cliffs have rallied 255% in a year compared with 51.2% rise of the industry.

Image Source: Zacks Investment Research

In the first quarter, the company’s adjusted earnings came in at 35 cents per share that beat the Zacks Consensus Estimate of 33 cents. It also recorded revenues of $4,049 million, beating the Zacks Consensus Estimate of $3,820.8 million.

The company reported Steelmaking revenues of $3.9 billion for the first quarter and average net selling price per net ton of steel products was $900 for the quarter.

Zacks Rank & Key Picks

Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, Olin Corporation OLN and Cabot Corporation CBT.

Nucor has a projected earnings growth rate of around 260% for the current year. The company’s shares have surged 131.7% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 278.5% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 61.8% in the past year. It currently carries a Zacks Rank #1.

Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today. 

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.