How Analysts View Steel Stocks after Their 1Q18 Earnings



1Q18 earnings

The 1Q18 earnings season is nearly over, and most US-based steel companies have released their quarterly earnings. ArcelorMittal (MT), the world’s largest steel producer, is scheduled to release its 1Q18 earnings on May 11. You can read Word on the Street ahead of ArcelorMittal’s 1Q18 Earnings to explore what analysts are projecting for ArcelorMittal’s 1Q18 earnings.

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Earnings season

While Nucor (NUE) and Steel Dynamics posted better-than-expected earnings in 1Q18, the market’s reaction to their earnings was subdued at best. On the other hand, both AK Steel (AKS) and U.S. Steel Corporation (X) saw selling sprees after their 1Q18 earnings releases despite posting better-than-expected earnings. 

In U.S. Steel’s case, its 2018 earnings guidance spooked the markets. The company discussed “continued operational volatility” at its facilities, which added momentum to the sell-off of its stock. You can read U.S. Steel Corporation: Has the Storm Settled Down? to see how U.S. Steel looks after the recent sell-off.

US steel companies (XME) sounded optimistic about the industry outlook during their 1Q18 earnings calls despite the policy uncertainty over the Section 232 tariffs imposed by President Trump earlier this year.

Series overview

Analysts tend to revise their ratings and target prices after companies’ earnings releases to reflect the quarterly performance and the outlook provided during these companies’ earnings calls. In this series, we’ll discuss how analysts are rating steel stocks after the 1Q18 earnings season.

Let’s begin by looking at Steel Dynamics’ ratings and target prices.


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