Cleveland-Cliffs Inc. (NYSE:CLF) shares are trading lower on Tuesday following weak third-quarter results reported on Tuesday.

The company reported third-quarter revenue of $4.57 billion, versus estimates of $4.77 billion, and adjusted loss per share of $0.33, versus estimates for a loss of $0.27.

Cleveland-Cliffs lowered its capital expenditures outlook for full year 2024 from a range of $650 million to $700 million to a new range of $600 million to $650 million.

In the earnings press release, the company said Stelco's assets are well-capitalized, and it expects to benefit from the company's cost advantages and strong business model on day one. Cleveland-Cliffs noted Stelco's business has "virtually no exposure" to the automotive sector.

B Riley Securities analyst Lucas N. Pipes says that based on management's earlier comments, they previously projected $985 million for 2025 and anticipate insights on the significant reductions.

The analyst adds that Cliffs' acquisition of Stelco was finalized on November 1, and they are eager to hear management's thoughts on the integration process, potential synergies, debt reduction, and product mix.

Also, the analyst anticipates updated insights from management regarding the timeline for the integration process of the Stelco acquisition and the complete realization of the $120 million in cost synergies.

The analyst maintains the Buy rating and $21 price forecast.

KeyBanc Capital Markets analyst Philip Gibbs writes that Cleveland-Cliffs reported EBITDA of $124 million for the quarter, compared to their estimate of $134 million. The slight shortfall in steel volumes appears to be linked to adjustments in automotive production and inventory.

Investors can gain exposure to the stock via SPDR S&P Metals & Mining ETF (NYSE:XME) and VanEck Steel ETF (NYSE:SLX).

Price Action: CLF shares are down 10.3% at $11.76 at the last check Tuesday.

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