Why ArcelorMittal’s 3Q16 Earnings Spooked Investors



ArcelorMittal’s 3Q16 earnings

ArcelorMittal (MT), the world’s largest steelmaker, released its 3Q16 earnings on November 8. It has been a remarkable year for the company. The stock has gained ~98% YTD (year-to-date), led by improved steel market conditions globally.

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3Q16 earnings season

ArcelorMittal’s 3Q16 earnings have now arrived, and most other steel companies have already released their 3Q16 earnings. It’s been mixed earnings season for the steel sector. While Nucor (NUE) and U.S. Steel (X) missed their consensus earnings estimates, AK Steel (AKS) managed to beat its consensus earnings estimates for 3Q16.

U.S. Steel also cut its 2016 earnings guidance during their 3Q16 earnings call. (You can read Key Takeaways from U.S. Steel’s 3Q16 Earnings for more about the company’s 3Q16 financial results.)

Series overview

We should remember that the third quarter is seasonally slow for ArcelorMittal as steel demand, especially in its core end market of Europe (VGK), tends to slow down in the second half of the year. However, despite the seasonal slowdown, 3Q16 represents ArcelorMittal’s best quarterly performance since 3Q14.

Meanwhile, despite posting a strong quarterly performance, ArcelorMittal’s 3Q16 earnings sparked a selling spree, and the stock fell 6.5% on November 8. In this series, we’ll look at ArcelorMittal’s 3Q16 earnings in detail. We’ll also look at the key takeaways from MT’s earnings call.

Let’s begin by looking at MT’s 3Q16 revenues.


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