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Steel & Iron Stocks Reporting Q4 Earnings: TYEKF, APEMY, CLF
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So far the fourth quarter is showing promise with earnings set to attain the highest level in eight quarters. The earnings growth graph so far has been encouraging in this quarter with total 55% of the companies in the S&P 500 logging growth of 6.9%. Taking into consideration the estimates from the still-to-come 225 index members, total earnings in the quarter are now expected to be up 6.8% year over year on the back of 3.9% higher revenues. (Read more: All-Time Record Earnings in Q4).
The steel industry continues to benefit from the sustained demand in the automobile and construction sectors. Further, steel market conditions in the U.S. have improved of late, driven by favorable developments on steel trade cases in the recent past. However, the economic slowdown in China, and the continued weakness in the manufacturing sector will remain headwinds.
The steel industry falls under the broader Basic Materials sector which is among the 16 broader Zacks sectors. The 65% of the companies in this sector that have reported so far have put up a 9.6% increase in earnings. As per our projections, taking into account the companies that are yet to report, the sector’s earnings are anticipated to rise 4.5% in the quarter.
Let’s take a peek at three steel companies that are gearing up to report their numbers this week.
ThyssenKrupp AG (TYEKF - Free Report) is one of the world's largest steel producers, and also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services. It is expected to release its fourth-quarter 2016 results around Feb 9. In the last reported quarter, the group’s sales declined year over year while net income more than doubled.
The company expects improvement in material prices to benefit earnings in the fourth quarter.
Our proven model does not conclusively show that ThyssenKrupp is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
In the past three months, ThyssenKrupp has outperformed the Zacks categorized Steel Producers sub industry. The stock has risen 12.4% outpacing the sub industry’s gain of 8.5%.
Stainless and specialty steel products manufacturer, Aperam (APEMY - Free Report) , is scheduled to report fourth-quarter numbers on Feb 9. In the last reported quarter, the company reported a massive surge of 141% in earnings despite a 9% dip in revenues.
In the past three months, Aperam has underperformed the Zacks categorized Steel Producers sub industry. The stock has risen 6.2% falling behind the sub industry’s gain of 8.5%.
As the market conditions are on the rebound in Europe, Aperam is well poised to deliver solid results owing to strong focus on operational excellence and value strategy.
The combination of Aperam’s Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter. Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into an earnings announcement.
Cliffs Natural Resources Inc. (CLF - Free Report) is a producer of iron ore pellets in North America and a supplier of metallurgical coal to the global steelmaking industry. It is scheduled to release fourth-quarter 2016 results before the opening bell on Feb 9. In the third quarter, the company had reported a loss while revenues declined 7%.
Cliffs Natural Resources Inc. Price and EPS Surprise
In the last quarter, the company had delivered a negative earnings surprise of 110.53%. The company has outpaced the Zacks Consensus Estimate in three of the four trailing quarters, with an average positive earnings surprise of 55.40%.
Cliffs has outperformed the Zacks categorized Mining-Iron industry in the past three months. The company’s shares have gained around 26.3% in this period, compared with the 25.4% gain recorded by the industry.
The company is anticipated to benefit from improved iron ore prices in the fourth quarter and its cost initiatives are also expected to support its earnings. Further, Cliffs should gain from its supply deals with other companies.
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Steel & Iron Stocks Reporting Q4 Earnings: TYEKF, APEMY, CLF
So far the fourth quarter is showing promise with earnings set to attain the highest level in eight quarters. The earnings growth graph so far has been encouraging in this quarter with total 55% of the companies in the S&P 500 logging growth of 6.9%. Taking into consideration the estimates from the still-to-come 225 index members, total earnings in the quarter are now expected to be up 6.8% year over year on the back of 3.9% higher revenues. (Read more: All-Time Record Earnings in Q4).
The steel industry continues to benefit from the sustained demand in the automobile and construction sectors. Further, steel market conditions in the U.S. have improved of late, driven by favorable developments on steel trade cases in the recent past. However, the economic slowdown in China, and the continued weakness in the manufacturing sector will remain headwinds.
The steel industry falls under the broader Basic Materials sector which is among the 16 broader Zacks sectors. The 65% of the companies in this sector that have reported so far have put up a 9.6% increase in earnings. As per our projections, taking into account the companies that are yet to report, the sector’s earnings are anticipated to rise 4.5% in the quarter.
Let’s take a peek at three steel companies that are gearing up to report their numbers this week.
ThyssenKrupp AG (TYEKF - Free Report) is one of the world's largest steel producers, and also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services. It is expected to release its fourth-quarter 2016 results around Feb 9. In the last reported quarter, the group’s sales declined year over year while net income more than doubled.
The company expects improvement in material prices to benefit earnings in the fourth quarter.
Our proven model does not conclusively show that ThyssenKrupp is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though ThyssenKrupp’s Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past three months, ThyssenKrupp has outperformed the Zacks categorized Steel Producers sub industry. The stock has risen 12.4% outpacing the sub industry’s gain of 8.5%.
Stainless and specialty steel products manufacturer, Aperam (APEMY - Free Report) , is scheduled to report fourth-quarter numbers on Feb 9. In the last reported quarter, the company reported a massive surge of 141% in earnings despite a 9% dip in revenues.
In the past three months, Aperam has underperformed the Zacks categorized Steel Producers sub industry. The stock has risen 6.2% falling behind the sub industry’s gain of 8.5%.
As the market conditions are on the rebound in Europe, Aperam is well poised to deliver solid results owing to strong focus on operational excellence and value strategy.
The combination of Aperam’s Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter. Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into an earnings announcement.
Cliffs Natural Resources Inc. (CLF - Free Report) is a producer of iron ore pellets in North America and a supplier of metallurgical coal to the global steelmaking industry. It is scheduled to release fourth-quarter 2016 results before the opening bell on Feb 9. In the third quarter, the company had reported a loss while revenues declined 7%.
Cliffs Natural Resources Inc. Price and EPS Surprise
Cliffs Natural Resources Inc. Price and EPS Surprise | Cliffs Natural Resources Inc. Quote
In the last quarter, the company had delivered a negative earnings surprise of 110.53%. The company has outpaced the Zacks Consensus Estimate in three of the four trailing quarters, with an average positive earnings surprise of 55.40%.
Cliffs has outperformed the Zacks categorized Mining-Iron industry in the past three months. The company’s shares have gained around 26.3% in this period, compared with the 25.4% gain recorded by the industry.
The company is anticipated to benefit from improved iron ore prices in the fourth quarter and its cost initiatives are also expected to support its earnings. Further, Cliffs should gain from its supply deals with other companies.
Cliffs Natural’s Zacks Rank #2 and an Earnings ESP of +16.00% makes us reasonably optimistic about a beat this quarter. (Read more: Cliffs Natural Q4 Earnings: Stock Poised to Beat?)
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In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>