ArcelorMittal (MT) Gears Up for Q3 Earnings: What's in Store?
Zacks Investment Research | Nov 08, 2021 07:08AM ET
ArcelorMittal (NYSE:MT) industry .
Let’s see how things are shaping up for this announcement.
h3 What do the Estimates Say?/h3The Zacks Consensus Estimate for third-quarter sales for ArcelorMittal is currently pegged at $22,440 million, which suggests a rise of 69.2% year over year.
The Zacks Consensus Estimate for revenues in the NAFTA segment is currently pegged at $3,803 million, which calls for a rise of 14.2% on a year-over-year comparison basis. The consensus estimate for average steel selling price stands at $1,179 per ton, reflecting a year-over-year rise of 68.2%.
Moreover, the consensus mark for revenues in the Brazil segment is currently pegged at $3,869 million, which calls for a year-over-year rise of 141.4%. The same for average steel selling price stands at $1,262 per ton, reflecting a year-over-year increase of 101.9%.
The consensus mark for revenues in the Europe segment is currently pegged at $12,096 million, which suggests a year-over-year rise of 72.5%. The same for average steel selling price stands at $968 per ton, reflecting a year-over-year rise of 79.4%.
The Zacks Consensus Estimate for revenues in the Asia Africa and CIS segment is currently pegged at $2,849 million, which calls for an increase of 103.5% year over year. The consensus mark for average steel selling price is pinned at $820 per ton, reflecting a year-over-year increase of 76.3%.
The consensus mark for revenues in the Mining segment is currently pegged at $1,296 million, which reflects a year-over-year rise of 8%.
h3 Some Factors at Play/h3ArcelorMittal’s third-quarter results are likely to have benefited from higher end-market demand. It is seeing a strong rebound in demand following the easing of lockdown measures. ArcelorMittal, in its second-quarter call, raised its outlook for global apparent steel consumption for 2021 as it expects demand to further improve in the second half.
The company’s cost-reduction initiatives will also likely to have supported profitability in the quarter to be reported. It remains focused on maintaining a competitive cost advantage.
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The company is also likely to have gained from higher steel prices in the third quarter. Its average steel selling prices went up around 61% year over year in the second quarter of 2021 and boosted bottom line. The momentum is expected to have continued in the third quarter. Strong end-market demand, tight supply and higher raw material costs are driving steel prices. Benefits of higher steel prices are expected to reflect on the company’s bottom line in the September quarter.
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