How Analysts Are Rating ArcelorMittal Ahead of Its 2Q17 Results



ArcelorMittal’s 2Q17 earnings

ArcelorMittal (MT), the world’s largest steelmaker, is scheduled to release its 2Q17 earnings on July 27. Analysts polled by Thomson Reuters expect the company to post revenue of $17.4 billion in 2Q17. ArcelorMittal posted revenue of $16.0 billion in 1Q17 and $14.7 billion in 2Q16. ArcelorMittal’s 2Q17 EBITDA (earnings before interest, tax, depreciation, and amortization) are expected to rise to $2.3 billion in 2Q17, compared with $2.2 billion in 1Q17. ArcelorMittal’s 2Q17 earnings results are around the corner—let’s see how leading brokerages are rating the stock.

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Consensus estimates

ArcelorMittal has received a consensus one-year price target of 27.28 euros (~$31.15) from analysts polled by Thomson Reuters. Based on its July 11 closing price, ArcelorMittal is trading 30.5% below its consensus one-year price target. Steelmakers (XME) U.S. Steel Corporation (X) and AK Steel (AKS) are trading 26.2% and 40.0% below their consensus price targets, respectively.

Of the 24 analysts covering ArcelorMittal on July 11, 16 had a “buy” or equivalent rating on the stock. Six analysts rated ArcelorMittal as “hold,” while the remaining two analysts gave it a “sell” rating.

Iron ore prices

Iron ore prices recently stabilized after a fall earlier this year. As ArcelorMittal is an integrated steelmaker, it benefits from higher iron ore prices. ArcelorMittal’s mining segment reported a steep increase in its 1Q17 profitability due to higher iron ore prices (CLF). However, lower iron ore prices could dent the company’s 2Q17 earnings. You can visit our Steel page for ongoing updates on this industry.


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