How Do Steel Industry Indicators Look amid 2Q16 Earnings Season?

Steel industry indicators

We are in the middle of the 2Q16 earnings season, and Nucor (NUE) and Steel Dynamics (STLD) have already released their 2Q16 earnings. U.S. Steel (X) and AK Steel (AKS) are expected to release their 2Q16 earnings on July 26. ArcelorMittal (MT) is set to release its 2Q16 financial results on July 29.

2Q16 earnings season

It’s been a lackluster earnings season so far for steel companies (XME). Steel Dynamics, which released its 2Q16 financial results on July 18, posted better-than-expected earnings while reporting largely in line revenues. Nucor (NUE) released its 2Q16 earnings on July 21. Nucor’s 2Q16 revenues fell short of analysts’ expectations while it managed to deliver an earnings beat as can be seen in the graph above. However, both these companies saw negative price action after their respective 2Q16 earnings release. Given the spectacular rally in the steel space this year, investors expect much more than an “earnings beat” from steel companies’ 2Q16 earnings.

You can read U.S. Steel’s 2Q16 Earnings: What’s the Word on Wall Street? to explore what the analysts are expecting from U.S. Steel’s 2Q16 earnings.

Series overview

This being earnings season, investors are glued to company earnings reports and conference calls. However, as an investor, it’s important not to lose track of the key steel industry indicators.

In this series, we’ll look at some of the recent steel industry indicators. The rally in steel stocks was accompanied by improving fundamentals. By analyzing how steel industry indicators are shaping up currently, you can get a sense of how steel companies could perform beyond the current quarter.