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Markets Give Thumbs Down to ArcelorMittal’s 4Q15 Earnings

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ArcelorMittal’s 4Q15 earnings

ArcelorMittal (MT), the world’s largest steel company in terms of steel production, released its 4Q15 financial results on February 5, 2016. The company’s 4Q15 earnings and 2016 guidance were not received well by the markets, and it saw a fall of almost 10% after its 4Q15 earnings were released.

ArcelorMittal’s 4Q15 earnings came in toward the end of the 4Q15 earnings season. Most other companies have already released their 4Q15 results. You can find out more about steel companies’ 4Q15 earnings in our series Looking back to Push Forward: Decoding 4Q15 Steel Earnings in 2016.

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Increased volatility

The 4Q15 earnings season came amid heightened market volatility. Global stocks, especially in the materials space (XLB), saw extreme turbulence in January. There were wild price movements, both upward and downward. The graph above shows major steel companies’ 2016 price movements.

Among these price movements, U.S. Steel Corporation (X) saw a fall of 14% after its 4Q15 earnings release. However, Nucor (NUE), AK Steel (AKS), and Steel Dynamics (STLD) witnessed upward price movements after their respective earnings releases.

It’s important to note that all of the companies covered here beat earnings estimates for the quarter. This suggests that Wall Street analysts were bearish about the industry’s 4Q15 prospects. Nonetheless, 4Q15 was the most challenging quarter for the US steel industry since 2009.

Series overview

In this series, we’ll look at ArcelorMittal’s 4Q15 earnings in detail. We’ll also cover the key points from the company’s 4Q15 earnings conference call. These should help you understand ArcelorMittal’s position in what is shaping up to be an extremely challenging year.

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