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ArcelorMittal’s 2Q16 Earnings: What’s the Word on Wall Street?

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Jul. 24 2016, Published 6:46 a.m. ET

ArcelorMittal’s 2Q16 earnings

ArcelorMittal (MT) has had a nice little rally this year on the back of improved steel market conditions. The stock has gained ~72% year-to-date.

The positive sentiment in the steel industry has helped steel producers trade at higher price levels. US spot steel prices are currently at the highest level since December 2014.

Steel prices have recovered globally also, but as much as the sharp appreciation in US steel prices. US steel prices have outperformed other industrial metals this year, as can be seen in the graph above.

Last year, US steel prices fell to levels that weren’t seen during the height of the 2008–2009 financial crisis. Steel and some steelmaking raw materials had the dubious distinction of breaching 2009 lows.

Notably, other industrial metals like copper and aluminum managed to hold on to their 2009 lows despite the sell-offs in the commodity space (COMT).

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Earnings season

Now, we are into the 2Q16 earnings season. Steel Dynamics (STLD) released its 2Q16 earnings on July 18. The company posted better-than-expected earnings while reporting largely in-line revenues. Nucor (NUE) released its 2Q16 earnings on July 21. Nucor’s 2Q16 revenues fell short of analysts’ expectations.

U.S. Steel (X) and AK Steel (AKS) are expected to release their 2Q16 earnings on July 26. ArcelorMittal (MT) is set to release its 2Q16 financial results on July 29. It’s crucial for steel companies to justify their price movements with solid 2Q16 earnings.

Series overview

In this series, we’ll explore what Wall Street expects from ArcelorMittal’s 2Q16 earnings. We’ll also look at the key points that ArcelorMittal investors should watch for in the company’s 2Q16 earnings conference call. Let’s start by analyzing what Wall Street expects for ArcelorMittal’s revenues in 2Q16.

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