ArcelorMittal Beats on Both Top and Bottom Lines

ArcelorMittal (NYSE: MT  ) reported earnings on Feb. 6. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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