Investing

Earnings Previews: ArcelorMittal, Coca-Cola, Peabody Energy, Twitter

Markets closed flat to lower on Monday, primarily due to some heavy last-minute selling. Out of 22 companies we tracked that reported earnings after markets closed, 10 missed revenue expectations and four missed on earnings, while three missed on both. Among stocks announcing results Tuesday morning, another 10 missed revenue estimates.

Four notable earnings reports are due out after markets close Tuesday: Chipotle, Enphase, Global Foundries and Lyft. We also have previewed three firms set to report quarterly results before markets open on Wednesday: Cameco, Canopy Growth and CVS Health.

Earlier in the morning, we previewed four firms set to report results after markets close Wednesday afternoon: Disney, Fox, MGM Resorts and Uber.

Here is a look at four firms scheduled to report results first thing on Thursday.

ArcelorMittal

The world’s second-largest (by market cap) steelmaker, Luxembourg-based ArcelorMittal (NYSE: MT), has added more than 53% to its share price over the past 12 months. The company announced Monday that it plans to replace three of its five French blast furnaces with electric arc furnaces between now and 2030 as the company seeks to cut up to 40% of its carbon emissions in the country.

ArcelorMittal is also reported to be in the mix of potential buyers with $2 billion to spend on Sprng Energy, an India-based renewable energy platform. Steel production produces approximately 10% of global carbon emissions.

There are 17 brokerage firms covering the stock, and 16 of them have Buy or Strong Buy ratings on the shares. There are no negative ratings. At a recent share price of around $28.30, the upside potential based on a median price target of $40.36 is nearly 43%. At the high price target of $50.78, the upside potential is 79.4%.

For the fourth quarter, ArcelorMittal is expected to report revenue of $20.06 billion, which would be down less than 1% sequentially and up 41.5% year over year. Adjusted earnings per share (EPS) are forecast at $3.48, down 18.4% sequentially and much better than year-ago quarterly EPS of $0.19. For the full 2021 fiscal year, analysts are looking for EPS of $13.27 compared to a loss of $0.78 per share last year, on revenue of $76.1 billion, up 42.9%.

ArcelorMittal stock trades at 2.5 times expected 2021 EPS, 4.1 times estimated 2022 earnings of $8.04 and 5.0 times estimated 2023 earnings of $6.70 per share. The stock’s 52-week range is $22.21 to $37.87. The company pays an annual dividend of $0.30 (yield of 0.95%). Total shareholder return for the past year is about 45.7%.

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