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ArcelorMittal (MT) Gears Up for Q2 Earnings: What's in Store?
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ArcelorMittal (MT - Free Report) will release second-quarter 2021 results before the bell on Jul 29. The company’s results are likely to have benefited from higher average steel selling prices and a recovery in demand.
The steel giant beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 52.3%, on average. It posted an earnings surprise of 22.9% in the last reported quarter.
Shares of ArcelorMittal have shot up 192.7% in the past year compared with 126.9% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for second-quarter sales for ArcelorMittal is currently pegged at $19,669 million, which suggests a rise of 79.2% year over year.
The Zacks Consensus Estimate for revenues in the NAFTA segment is currently pegged at $3,246 million, which calls for a rise of 28% on a sequential comparison basis. The consensus estimate for average steel selling price stands at $984 per ton, reflecting a sequential rise of 15.8%.
Moreover, the consensus mark for revenues in the Brazil segment is currently pegged at $2,833 million, which calls for a sequential rise of 12.9%. The same for average steel selling price stands at $942 per ton, reflecting a sequential increase of 12.5%.
The consensus mark for revenues in the Europe segment is currently pegged at $10,089 million, which suggests a sequential rise of 8.1%. The same for average steel selling price stands at $968 per ton, reflecting a sequential rise of 19.1%.
The Zacks Consensus Estimate for revenues in the Asia Africa and CIS segment is currently pegged at $2,299 million, which calls for an increase of 14.4% sequentially. The consensus mark for average steel selling price is pinned at $765 per ton, reflecting a sequential increase of 18.2%.
The consensus mark for revenues in the Mining segment is currently pegged at $1,022 million, which reflects a sequential rise of 6%.
Some Factors at Play
ArcelorMittal’s second-quarter results are likely to have benefited from higher end-market demand. It is seeing a strong rebound in demand, especially in automotive, following the easing of lockdown measures. ArcelorMittal, in its first-quarter call, said that the global steel industry is now benefiting from a favorable supply-demand balance that is supporting rising utilization as demand recovers.
The company’s cost-reduction initiatives will also likely to have supported profitability in the quarter to be reported. It remains focused on maintaining a competitive cost advantage.
The company is also likely to have gained from higher steel prices in the second quarter. Its average steel selling prices went up around 25% year over year in the first quarter and boosted bottom line. The momentum is likely to have continued in the second quarter. Strengthening end-market demand, tight supply and higher raw material costs are driving steel prices. Benefits of higher steel prices are expected to reflect on the company’s bottom line in the June quarter.
Our proven model does not conclusively predict an earnings beat for ArcelorMittal this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for ArcelorMittal is 0.00%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged $2.70. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ArcelorMittal currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Image: Bigstock
ArcelorMittal (MT) Gears Up for Q2 Earnings: What's in Store?
ArcelorMittal (MT - Free Report) will release second-quarter 2021 results before the bell on Jul 29. The company’s results are likely to have benefited from higher average steel selling prices and a recovery in demand.
The steel giant beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 52.3%, on average. It posted an earnings surprise of 22.9% in the last reported quarter.
Shares of ArcelorMittal have shot up 192.7% in the past year compared with 126.9% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for second-quarter sales for ArcelorMittal is currently pegged at $19,669 million, which suggests a rise of 79.2% year over year.
The Zacks Consensus Estimate for revenues in the NAFTA segment is currently pegged at $3,246 million, which calls for a rise of 28% on a sequential comparison basis. The consensus estimate for average steel selling price stands at $984 per ton, reflecting a sequential rise of 15.8%.
Moreover, the consensus mark for revenues in the Brazil segment is currently pegged at $2,833 million, which calls for a sequential rise of 12.9%. The same for average steel selling price stands at $942 per ton, reflecting a sequential increase of 12.5%.
The consensus mark for revenues in the Europe segment is currently pegged at $10,089 million, which suggests a sequential rise of 8.1%. The same for average steel selling price stands at $968 per ton, reflecting a sequential rise of 19.1%.
The Zacks Consensus Estimate for revenues in the Asia Africa and CIS segment is currently pegged at $2,299 million, which calls for an increase of 14.4% sequentially. The consensus mark for average steel selling price is pinned at $765 per ton, reflecting a sequential increase of 18.2%.
The consensus mark for revenues in the Mining segment is currently pegged at $1,022 million, which reflects a sequential rise of 6%.
Some Factors at Play
ArcelorMittal’s second-quarter results are likely to have benefited from higher end-market demand. It is seeing a strong rebound in demand, especially in automotive, following the easing of lockdown measures. ArcelorMittal, in its first-quarter call, said that the global steel industry is now benefiting from a favorable supply-demand balance that is supporting rising utilization as demand recovers.
The company’s cost-reduction initiatives will also likely to have supported profitability in the quarter to be reported. It remains focused on maintaining a competitive cost advantage.
The company is also likely to have gained from higher steel prices in the second quarter. Its average steel selling prices went up around 25% year over year in the first quarter and boosted bottom line. The momentum is likely to have continued in the second quarter. Strengthening end-market demand, tight supply and higher raw material costs are driving steel prices. Benefits of higher steel prices are expected to reflect on the company’s bottom line in the June quarter.
ArcelorMittal Price and EPS Surprise
ArcelorMittal price-eps-surprise | ArcelorMittal Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for ArcelorMittal this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for ArcelorMittal is 0.00%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged $2.70. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ArcelorMittal currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake Chemical Corporation (WLK - Free Report) scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #1.
Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.