The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ArcelorMittal beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share expanded. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins dropped across the board.
ArcelorMittal logged revenue of $19.31 billion. The 14 analysts polled by S&P Capital IQ predicted a top line of $18.90 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $22.45 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 $0.67. The one earnings estimate compiled by S&P Capital IQ averaged -$2.78 per share. GAAP EPS were -$2.58 for Q4 against -$0.68 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 6.9%, 100 basis points worse than the prior-year quarter. Operating margin was 0.5%, 520 basis points worse than the prior-year quarter. Net margin was -20.6%, 1,610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $20.62 billion.
Next year's average estimate for revenue is $86.43 billion. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,049 members out of 2,111 rating the stock outperform, and 62 members rating it underperform. Among 470 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 461 give ArcelorMittal a green thumbs-up, and nine 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 $20.49.
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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.