The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ArcelorMittal met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
ArcelorMittal reported revenue of $19.72 billion. The 14 analysts polled by S&P Capital IQ looked for a top line of $19.67 billion on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $24.21 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 -$0.31. The two earnings estimates compiled by S&P Capital IQ anticipated -$0.02 per share. GAAP EPS were -$0.46 for Q3 compared to $0.19 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 6.8%, 310 basis points worse than the prior-year quarter. Operating margin was 0.9%, 430 basis points worse than the prior-year quarter. Net margin was -3.6%, 630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $19.47 billion. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $86.12 billion. The average EPS estimate is $0.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,070 members out of 2,132 rating the stock outperform, and 62 members rating it underperform. Among 439 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 427 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 $25.50.
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