US steel industry indicators
We’re in the middle of the 3Q16 earnings season. Nucor (NUE), AK Steel (AKS), and Steel Dynamics (STLD) have already released their 3Q16 earnings. U.S. Steel (X) and ArcelorMittal (MT) are expected to release their 3Q16 earnings on November 1 and November 8, respectively. You can read U.S. Steel’s 3Q16 Earnings: What’s the Word on Wall Street? to find out analysts’ expectations from U.S. Steel’s 3Q16 earnings.
3Q16 earnings so far
So far, it has been a mixed earnings season for steel companies (XME). While Steel Dynamics’ 3Q16 earnings were more or less in line with estimates, Nucor missed consensus revenue as well as earnings estimates. However, AK Steel managed to beat analysts’ earnings estimates handsomely. Markets also rewarded AK Steel for its better-than-expected earnings. As a result, its share price rose. Since then, AK Steel saw downward price action after the company announced a fresh issue of equity shares.
Since it’s earnings season, investors are naturally glued to company earnings reports and conference calls. As an investor, it’s important not to lose track of the key steel industry indicators.
In this series, we’ll look at some of the recent steel industry indicators. The rally in steel stocks was accompanied by improving fundamentals. By analyzing how steel industry indicators are shaping up, you can get a sense of how steel companies could perform beyond the current quarter.
We’ll start by looking at September steel import data in the next part of the series.