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Can ArcelorMittal’s 1Q17 Earnings Lift Steel Market Sentiments?

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ArcelorMittal’s 1Q17 earnings

ArcelorMittal (MT), the world’s largest steelmaker (XME), will release its 1Q17 earnings on May 12. ArcelorMittal’s earnings are coming toward the end of the 1Q17 earnings season, after most steel companies have already reported their 1Q17 results.

It’s been a mixed earnings season for steel companies. While Nucor’s (NUE) and Steel Dynamics’ 1Q17 earnings boosted market sentiments, the mood turned somber after AK Steel (AKS) and U.S. Steel (X) released their earnings on April 25.

In U.S. Steel’s case, the company missed its 1Q17 earnings estimates by a wide margin and slashed its 2017 guidance. (You can read U.S. Steel’s 1Q17 Earnings: Bang or Whimper? for more about these results.)

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Price action

Calendar 2017 is turning out to be another rollercoaster year for steel companies. The year started on a positive note, with steel stocks carrying their positive momentum over from 2016. Notably, 2016 was nothing short of a turnaround year for steelmakers, as the expectations of supply-side reforms in China and Trump’s proposed infrastructure investments boosted steelmaker confidence.

However, most steel companies have already lost those gains. AK Steel and U.S. Steel, which more than quadrupled last year, are trading with massive year-to-date losses.

Series overview

In this series, we’ll explore what Wall Street expects from ArcelorMittal’s 1Q17 earnings. We’ll also look at the key points that MT investors should watch for in the company’s 1Q17 earnings conference call. We should remember that since MT is the largest steelmaker with a global presence, its commentary on global steel markets tends to impact market sentiments.

In the next part of this series, we’ll analyze what Wall Street analysts expect to see in ArcelorMittal’s 1Q17 revenues.

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