The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ArcelorMittal met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share expanded.
Margins contracted across the board.
ArcelorMittal notched revenue of $22.45 billion. The 11 analysts polled by S&P Capital IQ hoped for sales of $22.72 billion. GAAP sales were 8.5% higher than the prior-year quarter's $20.70 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.36. The two earnings estimates compiled by S&P Capital IQ averaged $0.14 per share on the same basis. GAAP EPS were -$0.65 for Q4 versus -$0.51 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.6%, 140 basis points worse than the prior-year quarter. Operating margin was 2.2%, 160 basis points worse than the prior-year quarter. Net margin was -4.5%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $23.18 billion.
Next year's average estimate for revenue is $95.04 billion. The average EPS estimate is $2.71.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,045 members out of 2,105 rating the stock outperform, and 60 members rating it underperform. Among 531 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 529 give ArcelorMittal a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ArcelorMittal is outperform, with an average price target of $33.97.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of ArcelorMittal. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.