The 10-second takeaway
For the quarter ended June 30 (Q2), ArcelorMittal missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
ArcelorMittal logged revenue of $22.48 billion. The 11 analysts polled by S&P Capital IQ expected net sales of $22.85 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $25.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.70. The two earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share. GAAP EPS of $0.56 for Q2 were 42% lower than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.9%, 250 basis points worse than the prior-year quarter. Operating margin was 5.7%, 510 basis points worse than the prior-year quarter. Net margin was 4.3%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $21.46 billion. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $90.49 billion. The average EPS estimate is $1.28.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,079 members out of 2,138 rating the stock outperform, and 59 members rating it underperform. Among 399 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 387 give ArcelorMittal a green thumbs-up, and 12 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 $27.09.
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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.