We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ArcelorMittal's (MT) Q4 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
ArcelorMittal (MT - Free Report) recorded profits of $4,045 million or $3.92 per share in the fourth quarter of 2021 compared with $1,207 million or $1.00 in the year-ago quarter.
Barring one-time items, earnings per share came in at $3.71, beating the Zacks Consensus Estimate of $3.39.
Total sales increased around 46.7% year over year to $20,806 million in the quarter. The figure surpassed the Zacks Consensus Estimate of $20,066.5 million. Sales were driven by a significant rally in average steel selling prices that more than offset lower iron ore prices.
Total steel shipments declined 8.7% year over year at 15.8 million metric tons in the reported quarter.
NAFTA: Sales increased roughly 3.9% year over year to $3.3 billion in the reported quarter. Crude steel production declined roughly 51% year over year to 2 million metric tons. Steel shipments fell around 46.7% year over year to 2.2 million metric tons. Average steel selling price increased 87.8% year over year to $1,341 per ton.
Brazil: Sales increased around 81.2% year over year to $3.5 billion. Crude steel production rose roughly 8.7% year over year to 3.1 million metric tons. Shipments increased 17.8% year over year to 3 million metric tons. The average steel selling price went up 49.4% year over year to $1,049 per ton.
Europe: Sales increased around 58.9% year over year to $12.1 billion. Crude steel production fell about 5.4% year over year to 8.6 million metric tons in the reported quarter. Shipments fell around 2.8% year over year to 8.3 million metric tons. The average steel selling price went up roughly 59.7% year over year to $1,110 per ton.
Asia Africa and CIS (ACIS): Sales rose around 63.5% year over year to $2.5 billion. Crude steel production totaled 2.7 million metric tons, up about 1% year over year. Shipments increased 9.4% year over year to around 2.6 million metric tons. Average selling prices rose around 58.5% year over year to $810 per ton.
Mining: Sales dropped 12.1% year over year to $824 million. Iron ore production totaled 7.2 million metric tons, down around 5.3% from the year-ago quarter’s levels. Iron ore shipments dropped 10.1% year over year to 7.1 million metric tons.
FY21 Results
Earnings (as reported) for 2021 were $13.49 per share against a loss of 64 cents a year ago. Net sales increased 43.7% year over year to roughly $76.6 billion.
Financials
At the end of the year, ArcelorMittal had cash and cash equivalents of around $4.4 billion, down around 26.7% year over year. The company’s long-term debt was $6.5 billion, down roughly 33.9% on a year over year basis.
Net cash from operating activities rose 193.4% year over year to $4,154 million in the fourth quarter.
ArcelorMittal initiated a new $1 billion share buyback program for the first half of 2022, factoring in the favorable outlook for free cashflow for this year. The board also recommended an increase of the base annual dividend to 38 cents per share from 30 cents paid in 2021. The revised dividend is expected to be paid in June 2022, subject to the approval of shareholders in May 2022.
Outlook
Moving ahead, ArcelorMittal envisions global apparent steel consumption (“ASC”) to increase 0-1% in 2022. The company recorded ASC growth of 4% in 2021. The global steel industry is benefiting from a favorable supply-demand balance, supporting higher utilization and improved demand. ArcelorMittal sees overall ASC, excluding China, to grow in the range of 2.5-3% year over year in 2022.
The capex is expected to increase from $3 billion in 2021 to $4.5 billion in 2022.
Price Performance
Shares of ArcelorMittal have surged 45.5% in the past year compared with a 39.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 43.4% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 55.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 13.2% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 35.4% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 64.3% over a year. The company carries a Zacks Rank #2 (Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ArcelorMittal's (MT) Q4 Earnings and Revenues Beat Estimates
ArcelorMittal (MT - Free Report) recorded profits of $4,045 million or $3.92 per share in the fourth quarter of 2021 compared with $1,207 million or $1.00 in the year-ago quarter.
Barring one-time items, earnings per share came in at $3.71, beating the Zacks Consensus Estimate of $3.39.
Total sales increased around 46.7% year over year to $20,806 million in the quarter. The figure surpassed the Zacks Consensus Estimate of $20,066.5 million. Sales were driven by a significant rally in average steel selling prices that more than offset lower iron ore prices.
Total steel shipments declined 8.7% year over year at 15.8 million metric tons in the reported quarter.
ArcelorMittal Price, Consensus and EPS Surprise
ArcelorMittal price-consensus-eps-surprise-chart | ArcelorMittal Quote
Segment Review
NAFTA: Sales increased roughly 3.9% year over year to $3.3 billion in the reported quarter. Crude steel production declined roughly 51% year over year to 2 million metric tons. Steel shipments fell around 46.7% year over year to 2.2 million metric tons. Average steel selling price increased 87.8% year over year to $1,341 per ton.
Brazil: Sales increased around 81.2% year over year to $3.5 billion. Crude steel production rose roughly 8.7% year over year to 3.1 million metric tons. Shipments increased 17.8% year over year to 3 million metric tons. The average steel selling price went up 49.4% year over year to $1,049 per ton.
Europe: Sales increased around 58.9% year over year to $12.1 billion. Crude steel production fell about 5.4% year over year to 8.6 million metric tons in the reported quarter. Shipments fell around 2.8% year over year to 8.3 million metric tons. The average steel selling price went up roughly 59.7% year over year to $1,110 per ton.
Asia Africa and CIS (ACIS): Sales rose around 63.5% year over year to $2.5 billion. Crude steel production totaled 2.7 million metric tons, up about 1% year over year. Shipments increased 9.4% year over year to around 2.6 million metric tons. Average selling prices rose around 58.5% year over year to $810 per ton.
Mining: Sales dropped 12.1% year over year to $824 million. Iron ore production totaled 7.2 million metric tons, down around 5.3% from the year-ago quarter’s levels. Iron ore shipments dropped 10.1% year over year to 7.1 million metric tons.
FY21 Results
Earnings (as reported) for 2021 were $13.49 per share against a loss of 64 cents a year ago. Net sales increased 43.7% year over year to roughly $76.6 billion.
Financials
At the end of the year, ArcelorMittal had cash and cash equivalents of around $4.4 billion, down around 26.7% year over year. The company’s long-term debt was $6.5 billion, down roughly 33.9% on a year over year basis.
Net cash from operating activities rose 193.4% year over year to $4,154 million in the fourth quarter.
ArcelorMittal initiated a new $1 billion share buyback program for the first half of 2022, factoring in the favorable outlook for free cashflow for this year. The board also recommended an increase of the base annual dividend to 38 cents per share from 30 cents paid in 2021. The revised dividend is expected to be paid in June 2022, subject to the approval of shareholders in May 2022.
Outlook
Moving ahead, ArcelorMittal envisions global apparent steel consumption (“ASC”) to increase 0-1% in 2022. The company recorded ASC growth of 4% in 2021. The global steel industry is benefiting from a favorable supply-demand balance, supporting higher utilization and improved demand. ArcelorMittal sees overall ASC, excluding China, to grow in the range of 2.5-3% year over year in 2022.
The capex is expected to increase from $3 billion in 2021 to $4.5 billion in 2022.
Price Performance
Shares of ArcelorMittal have surged 45.5% in the past year compared with a 39.8% rise of the industry.
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 43.4% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 55.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 13.2% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 35.4% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 64.3% over a year. The company carries a Zacks Rank #2 (Buy).