ArcelorMittal Misses Where It Counts

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ArcelorMittal (NYS: MT) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), ArcelorMittal met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted significantly.


Margins dropped across the board.

Revenue details
ArcelorMittal booked revenue of $22.70 billion. The eight analysts polled by S&P Capital IQ expected revenue of $22.86 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $22.18 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.12. The two earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. GAAP EPS of $0.01 for Q1 were 99% lower than the prior-year quarter's $0.69 per share. (The prior-year quarter included $0.30 per share in earnings from discontinued operations.)

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 8.7%, 290 basis points worse than the prior-year quarter. Operating margin was 3.7%, 280 basis points worse than the prior-year quarter. Net margin was 0.0%, 480 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $24.17 billion. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $93.81 billion. The average EPS estimate is $2.38.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,062 members out of 2,120 rating the stock outperform, and 58 members rating it underperform. Among 445 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 437 give ArcelorMittal a green thumbs-up, and eight 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 $32.07.

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At the time this article was published 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 ofMotley 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.

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