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US Steel Companies: Looking for a Solid 2017

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US steel companies

The earnings season for 4Q16 is nearly over, and most steel companies have reported their earnings for the quarter. In this series, we’ll explore some of the key highlights of major steel companies’ 4Q16 earnings. We’ll also see how these companies are playing the recent recovery in the steel industry (XME). This could help us understand which steel companies could offer value in 2017.

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4Q16 earnings season

While 2016 was a phenomenal year for US steel companies, most steel companies saw selling pressure after their respective 4Q16 earnings releases. Steel Dynamics (STLD) and AK Steel (AKS) both saw negative price actions after their 4Q16 earnings releases. Steel Dynamics missed consensus earnings estimates. AK Steel saw selling pressure due to its weak outlook, despite beating consensus earnings estimates.

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

ArcelorMittal

However, the earnings season closed on a positive note with ArcelorMittal’s (MT) 4Q16 earnings release. The world’s largest steelmaker saw a buying spree after its 4Q16 earnings on an earnings beat and a positive outlook.

Although most steel companies managed to beat their consensus earnings estimates, there are other aspects that markets look for in companies’ quarterly financial results—steel shipments, for example.

In the next part, we’ll explore how different steel companies fared in the steel shipment metric in 4Q16.

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