We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Commercial Metals (CMC) Down 1.3% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Commercial Metals (CMC - Free Report) . Shares have lost about 1.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Commercial Metals due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Commercial Metals Earnings Beat Estimates in Q1, Up Y/Y
Commercial Metals Company reported first-quarter fiscal 2022 adjusted earnings per share (EPS) of $1.62, beating the Zacks Consensus Estimate of $1.30. The bottom line surged 179% year on year, driven by the company’s strategic transformation.
Including one-time items, the company achieved a record EPS of $1.90 in the fiscal first quarter compared with the prior-year quarter’s 53 cents.
Net sales for the reported quarter came in at $1,982 million compared with the year-ago quarter’s $1,392 million. However, the reported figure missed the Zacks Consensus Estimate of $2,050 million.
The cost of goods sold in the quarter was up 35% year over year to $1,586 million. The gross profit was up 82% year over year to $395 million during this period. The core EBITDA was a record $327 million in the fiscal first quarter, reflecting year-over-year growth of 109%.
Segment Performance
The North America segment generated net sales of $1,654 million in the fiscal first quarter compared with $1,195 million recorded in the prior-year quarter’s levels. The segment registered an adjusted EBITDA of $268 million compared with the year-earlier quarter’s $156 million.
The Europe segment’s revenues came in at $329 million, marking a year-over-year jump of 69%. The adjusted EBITDA was $79.8 million in the fiscal first quarter compared with the year-ago quarter’s $14.4 million.
Financials
Commercial Metals reported cash and cash equivalents of $415 million at the end of first-quarter fiscal 2022 compared with $498 million recorded at the end of fiscal 2021. The company’s long-term debt came in at $1,008 million at the end of the fiscal first quarter compared with $1,015 million at the end of the prior fiscal year. Cash generated from operating activities was $26 million in the fiscal first quarter’s end against $12 million utilized in the end of the prior-year quarter.
On Jan 6, the company declared a quarterly dividend of 14 cents per share. The dividend will be paid out on Feb 3, to shareholders of record as of Jan 20, 2022.
Outlook
Robust construction backlog in North America as well as strength across the key end markets in North America and Europe will continue supporting the solid steel sales volumes in fiscal 2022. Management expects the finished steel shipments volumes to follow the typical seasonal patterns during second-quarter fiscal 2022.
Business Updates
Commercial Metals ramped up the construction of its fourth new micro mill, which will enhance the company’s position in the Eastern United States and create significant synergies within its existing mills and downstream fabrication plants network. During the quarter, the company made solid progress in constructing its Arizona 2 micro mill. The operational startup of the mill will support strong demand stemming from the recently-passed Infrastructure Investment and Jobs Act.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 17.39% due to these changes.
VGM Scores
At this time, Commercial Metals has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Commercial Metals has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Commercial Metals (CMC) Down 1.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Commercial Metals (CMC - Free Report) . Shares have lost about 1.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Commercial Metals due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Commercial Metals Earnings Beat Estimates in Q1, Up Y/Y
Commercial Metals Company reported first-quarter fiscal 2022 adjusted earnings per share (EPS) of $1.62, beating the Zacks Consensus Estimate of $1.30. The bottom line surged 179% year on year, driven by the company’s strategic transformation.
Including one-time items, the company achieved a record EPS of $1.90 in the fiscal first quarter compared with the prior-year quarter’s 53 cents.
Net sales for the reported quarter came in at $1,982 million compared with the year-ago quarter’s $1,392 million. However, the reported figure missed the Zacks Consensus Estimate of $2,050 million.
The cost of goods sold in the quarter was up 35% year over year to $1,586 million. The gross profit was up 82% year over year to $395 million during this period. The core EBITDA was a record $327 million in the fiscal first quarter, reflecting year-over-year growth of 109%.
Segment Performance
The North America segment generated net sales of $1,654 million in the fiscal first quarter compared with $1,195 million recorded in the prior-year quarter’s levels. The segment registered an adjusted EBITDA of $268 million compared with the year-earlier quarter’s $156 million.
The Europe segment’s revenues came in at $329 million, marking a year-over-year jump of 69%. The adjusted EBITDA was $79.8 million in the fiscal first quarter compared with the year-ago quarter’s $14.4 million.
Financials
Commercial Metals reported cash and cash equivalents of $415 million at the end of first-quarter fiscal 2022 compared with $498 million recorded at the end of fiscal 2021. The company’s long-term debt came in at $1,008 million at the end of the fiscal first quarter compared with $1,015 million at the end of the prior fiscal year. Cash generated from operating activities was $26 million in the fiscal first quarter’s end against $12 million utilized in the end of the prior-year quarter.
On Jan 6, the company declared a quarterly dividend of 14 cents per share. The dividend will be paid out on Feb 3, to shareholders of record as of Jan 20, 2022.
Outlook
Robust construction backlog in North America as well as strength across the key end markets in North America and Europe will continue supporting the solid steel sales volumes in fiscal 2022. Management expects the finished steel shipments volumes to follow the typical seasonal patterns during second-quarter fiscal 2022.
Business Updates
Commercial Metals ramped up the construction of its fourth new micro mill, which will enhance the company’s position in the Eastern United States and create significant synergies within its existing mills and downstream fabrication plants network. During the quarter, the company made solid progress in constructing its Arizona 2 micro mill. The operational startup of the mill will support strong demand stemming from the recently-passed Infrastructure Investment and Jobs Act.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 17.39% due to these changes.
VGM Scores
At this time, Commercial Metals has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Commercial Metals has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.