Earnings Previews: ArcelorMittal, Hut 8

As more companies confirm their plans, the number of those on deck to report quarterly earnings this week has swelled to more than 1,000. None of the four companies we previewed that reported results after markets closed on Monday beat both on both the top and bottom lines. Of three previews for Tuesday morning, only one (BioNTech) beat on both.

After markets close Tuesday or before they open Wednesday morning, Coinbase, Nio, Plug Power and 23andMe are set to report quarterly results. Later on Wednesday, look for reports from Affirm, Disney, Progenity and SoFi.

Here are previews of two highly anticipated reports due out before markets open on Thursday.

ArcelorMittal

The world’s second-largest steelmaker by market cap, Luxembourg-based ArcelorMittal (NYSE: MT), has added about 117% to its share price over the past 12 months. The leader, Nucor, also posted a larger share price gain over the same period. Both trail Cleveland-Cliffs, which last year acquired ArcelorMittal’s U.S. operations, among other things.

Since posting a recent high in early October, global steel prices have tumbled by 25%. So far, steelmakers are not showing much impact from the recently passed $1.2 trillion U.S. infrastructure bill. ArcelorMittal reports results before markets open on Thursday.

All of the 17 brokerage firms covering the stock rate it at Buy or Strong Buy. At a recent price of around $32.30, the upside potential based on a median price target of $48 is nearly 49%. At the high price target of $58.31, the upside potential is more than 80%.

For the third quarter, ArcelorMittal is expected to report revenue of $21.67 billion, which would be up 12% sequentially and 63% higher year over year. Earnings per share (EPS) are forecast at $4.02, up 16% sequentially and much better than the year-ago quarter loss per share of $0.16. For the full year, analysts are looking for EPS of $12.57, compared to a loss of $0.78 per share last year, on revenue of $75.14 billion, up 41%.

ArcelorMittal stock trades at 2.6 times expected 2021 EPS. Based on current estimates, the 2022 multiple is 4.8 and the multiple for 2023 is 5.5. The stock’s 52-week range is $15.41 to $36.58. The company pays an annual dividend of $0.30 (yield of 0.90%).

Hut 8

Cryptocurrency mining company Hut 8 Mining Corp. (NASDAQ: HUT) has put up a massive gain over the past 12 months. The Toronto-based firm’s share price is up about 1,490% since this time last year. Since posting an all-time low in mid-March of last year, the stock is up nearly 1,700%. The company is named after the Bletchley Park building outside London where Alan Turing and others cracked the German Enigma codes during World War II.

Hut 8 has not attracted much attention from analysts. But the four surveyed are solid bulls, with three giving the stock a Buy rating and the other giving it a Strong Buy nod. At a price of around $15.60, the stock trades above its median price target of $15. Based on a high price target of $20, the upside potential on the stock is 28%.

Analysts expect the company to report that third-quarter revenue totaled $40.88 million, or up 51% sequentially. Adjusted EPS are forecast at $0.12. Additional quarterly data is not available. For the full year, EPS are forecast at $0.32 on sales of $149.87 million, up 368%.

The stock trades at 45.9 times expected 2021 EPS and 16.6 times estimated 2022 earnings. Hut 8’s 52-week trading range is $0.85 to $16.56. The high was posted Tuesday morning. Hut 8 does not pay a dividend.

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