Arcelor Mittal Earnings: Here’s Why the Stock is Down Now

Arcelor Mittal (NYSE:MT) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.85%.

Arcelor Mittal Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.44 in the quarter versus EPS of $0.56 in the year-earlier quarter.

Revenue: Decreased 10.15% to $20.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Arcelor Mittal reported adjusted EPS loss of $0.44 per share. By that measure, the company missed the mean analyst estimate of $0.09. It missed the average revenue estimate of $20.7 billion.

Quoting Management: Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
“The operating environment in the first half continued to be challenging but we have delivered progress in a number of important areas. The benefits of our restructuring efforts – particularly in Europe – are evident; strong cash-flow performance has enabled us to reduce net debt to below our mid-year target; and the expansion of ArcelorMittal Mines Canada is largely complete and will ramp up during the second half.
Although we have revised our full year guidance, the second half should deliver a clear underlying improvement relative to the second half of 2012, which we believe marked the lowest point in the cycle.”

Key Stats (on next page)…

Revenue increased 2.25% from $19.75 billion in the previous quarter. EPS increased to $-0.44 in the quarter versus EPS of $-0.21 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.19 to a profit $0.06. For the current year, the average estimate has moved down from a profit of $0.51 to a profit of $0.21 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)