United States Steel Corporation ( X ) shares are trading higher after the company announced its second-quarter guidance.

U.S. Steel has provided a second-quarter 2024 adjusted net earnings per diluted share guidance of $0.76 to $0.80, below the analyst consensus estimate of $0.83.

Second quarter 2024 adjusted EBITDA is expected to be approximately $425 million against the prior guidance of $425 million to $475 million.

“Adjusted EBITDA guidance of $425 million is at the lower end of our prior second quarter outlook and reflects stable domestic flat-rolled steel end-use demand despite a dynamic spot steel pricing environment,” said President and CEO David B. Burritt.

“As expected, challenging market conditions are negatively impacting the Tubular segment’s performance.”

Recently, the proposed $14.9 billion merger between Nippon Steel Corp and U.S. Steel has been met with strong opposition. 

The deal, initially expected to close by mid-2024, has been delayed due to political resistance and ongoing investigations. 

It is facing opposition from President Joe Biden who wants the U.S. Steel to remain under domestic ownership. The steel workers union, USW has also expressed concerns about potential job losses.

“We continue to work towards the remaining U. S. regulatory approvals, and look forward to closing the transaction that will bring advanced technologies to U. S. Steel to support a stronger domestic steel industry with enhanced competition and will strengthen national security, economic security and job security,” said David B. Burritt.

Price Action: X shares are trading higher by 0.80% at $36.75 at last check Monday.