ArcelorMittal (NYSE:MT) Shares Gap Down After Earnings Miss

Key Points

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Shares of ArcelorMittal (NYSE:MT - Get Free Report) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $32.46, but opened at $30.29. ArcelorMittal shares last traded at $31.41, with a volume of 1,084,957 shares changing hands.

The basic materials company reported $1.32 EPS for the quarter, missing the consensus estimate of $1.33 by ($0.01). The business had revenue of $15.93 billion for the quarter, compared to the consensus estimate of $15.48 billion. ArcelorMittal had a return on equity of 4.99% and a net margin of 4.11%. The firm's revenue for the quarter was down 2.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.63 earnings per share.

ArcelorMittal Cuts Dividend

The company also recently disclosed a dividend, which was paid on Wednesday, June 11th. Shareholders of record on Monday, May 19th were given a dividend of $0.2338 per share. This represents a yield of 144.0%. The ex-dividend date was Friday, May 16th. ArcelorMittal's payout ratio is currently 14.51%.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of ArcelorMittal from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. The Goldman Sachs Group raised shares of ArcelorMittal from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $29.00 to $31.70 in a research note on Thursday, April 10th. Barclays lowered shares of ArcelorMittal from an "overweight" rating to an "equal weight" rating in a report on Wednesday, July 16th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of ArcelorMittal in a report on Monday, April 14th. Five analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $32.95.

Institutional Investors Weigh In On ArcelorMittal

A number of institutional investors and hedge funds have recently made changes to their positions in MT. SVB Wealth LLC purchased a new stake in ArcelorMittal in the 1st quarter valued at about $43,000. Geneos Wealth Management Inc. grew its position in shares of ArcelorMittal by 44.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,635 shares of the basic materials company's stock valued at $47,000 after acquiring an additional 501 shares during the period. Hexagon Capital Partners LLC boosted its holdings in ArcelorMittal by 25.4% in the 1st quarter. Hexagon Capital Partners LLC now owns 1,779 shares of the basic materials company's stock worth $51,000 after buying an additional 360 shares during the period. GAMMA Investing LLC boosted its holdings in ArcelorMittal by 31.1% in the 1st quarter. GAMMA Investing LLC now owns 1,920 shares of the basic materials company's stock worth $55,000 after buying an additional 456 shares during the period. Finally, Bayforest Capital Ltd boosted its holdings in ArcelorMittal by 23.7% in the 1st quarter. Bayforest Capital Ltd now owns 2,298 shares of the basic materials company's stock worth $62,000 after buying an additional 440 shares during the period. Institutional investors and hedge funds own 9.29% of the company's stock.

ArcelorMittal Stock Performance

The company has a current ratio of 1.40, a quick ratio of 0.59 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $25.15 billion, a P/E ratio of 9.47, a P/E/G ratio of 0.13 and a beta of 1.65. The company's fifty day simple moving average is $31.80 and its 200 day simple moving average is $29.70.

ArcelorMittal Company Profile

ArcelorMittal SA, together with its subsidiaries, operates as integrated steel and mining companies in the United States, Europe, and internationally. It offers semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products consisting of bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes.