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ArcelorMittal’s Upcoming 4Q16: Do Bears Smell Opportunity?

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ArcelorMittal’s 4Q16 earnings

ArcelorMittal (MT), the world’s largest steelmaker, will release its 4Q16 earnings on February 10, 2017. It’s been a remarkable year for the company, with its stock rising almost 127.0%. An improved steel market could have led to the impressive performance.

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4Q16 earnings season

It’s been a subdued earnings season so far for steel investors (XME). Steel Dynamics (STLD) and AK Steel Holding (AKS) both saw negative price actions after their 4Q16 earnings releases. Steel Dynamics missed consensus earnings estimates, and AK Steel saw selling pressure on a tepid outlook, despite beating consensus earnings estimates.

Nucor (NUE) and United States Steel (X) released their 4Q16 earnings on January 31, 2017. Both these companies saw selling pressures despite posting better-than-expected earnings. You can read Key Takeaways from U.S. Steel’s 4Q16 Earnings to find out more about the company’s 4Q16 financial performance.

Metal stocks have been flying high since Donald Trump’s victory in the US presidential election. A Trump presidency helped revive market sentiment and boost steel stocks. The upward price action was a welcome break for steel investors, who had seen their investment values erode in previous years. Keep in mind that in the medium to long term, earnings are a key driver of stock prices.

Series overview

In this series, we’ll explore what Wall Street expects from ArcelorMittal’s (MT) 4Q16 earnings. We’ll also look at the key points that MT investors should watch in the company’s earnings conference call. Let’s start by analyzing what Wall Street analysts expects for ArcelorMittal’s revenues in 4Q16.

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