Commercial Metals Company (CMC - Free Report) reported fourth-quarter 2019 adjusted earnings per share of 76 cents, beating the Zacks Consensus Estimate of 70 cents. The figure also surged 49% year over year.
Including one-time items, the company reported net income of 72 cents per share during the fourth quarter compared with the prior-year quarter’s 43 cents.
Net sales for the reported quarter surged 18% year over year to $1,543 million. However, the reported figure missed the Zacks Consensus Estimate of $1,569 million.
Commercial Metals Company Price, Consensus and EPS Surprise
Cost of goods sold in the reported quarter improved around 15% year over year to roughly $1,290 million. Gross profit surged 38% year over year to $253 million in the quarter. Core EBITDA was $1596 million in the fiscal fourth quarter compared with the year-ago quarter’s $124 million.
Financials
Commercial Metals exited fiscal 2019 with cash and cash equivalents of $192.5 million compared with $622.5 million at the end of fiscal 2018. The company’s long-term debt increased to $1,227 million at the end of fiscal 2019 from $1,139 million recorded as of the end of fiscal 2018. Cash flow from operating activities were $37 million during the fiscal 2019 compared with cash usage of $434 million in the prior fiscal.
Fiscal 2019 Performance
Adjusted earnings per share in fiscal 2019 improved 40% year over year to $2.08, which surpassed the Zacks Consensus Estimate of $2.02. Including one-time items, the company reported earnings per share of $1.67 in fiscal 2019 compared with $1.14 in fiscal 2018.
Net sales in fiscal 2019 grew 26% year over year to $5.83 billion. However, the reported figure missed the Zacks Consensus Estimate of $5.88 billion.
Outlook
Backed by a solid fabrication backlog, current positive rebar margin environment and momentum in the Polish operations, the company expects improved results in fiscal 2020.
Price Performance
Commercial Metals’ shares have fallen 0.2% over the past year, compared with the industry’s decline of 25.5%.
Zacks Rank & Stocks to Consider
Commercial Metals currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Kirkland Lake Gold Ltd. , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Agnico Eagle Mines has an expected earnings growth rate of 162.86% for 2019. The company’s shares have gained 50% in the past year.
Franco-Nevada Corporation has a projected earnings growth rate of 39.32% for the current year. The company’s shares have rallied 52% in a year’s time.
Kirkland Lake Gold has an estimated earnings growth rate of 71.32% for the ongoing year. Its shares have appreciated 123% in the past year.
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Commercial Metals Company (CMC - Free Report) reported fourth-quarter 2019 adjusted earnings per share of 76 cents, beating the Zacks Consensus Estimate of 70 cents. The figure also surged 49% year over year.
Including one-time items, the company reported net income of 72 cents per share during the fourth quarter compared with the prior-year quarter’s 43 cents.
Net sales for the reported quarter surged 18% year over year to $1,543 million. However, the reported figure missed the Zacks Consensus Estimate of $1,569 million.
Commercial Metals Company Price, Consensus and EPS Surprise
Cost of goods sold in the reported quarter improved around 15% year over year to roughly $1,290 million. Gross profit surged 38% year over year to $253 million in the quarter. Core EBITDA was $1596 million in the fiscal fourth quarter compared with the year-ago quarter’s $124 million.
Financials
Commercial Metals exited fiscal 2019 with cash and cash equivalents of $192.5 million compared with $622.5 million at the end of fiscal 2018. The company’s long-term debt increased to $1,227 million at the end of fiscal 2019 from $1,139 million recorded as of the end of fiscal 2018. Cash flow from operating activities were $37 million during the fiscal 2019 compared with cash usage of $434 million in the prior fiscal.
Fiscal 2019 Performance
Adjusted earnings per share in fiscal 2019 improved 40% year over year to $2.08, which surpassed the Zacks Consensus Estimate of $2.02. Including one-time items, the company reported earnings per share of $1.67 in fiscal 2019 compared with $1.14 in fiscal 2018.
Net sales in fiscal 2019 grew 26% year over year to $5.83 billion. However, the reported figure missed the Zacks Consensus Estimate of $5.88 billion.
Outlook
Backed by a solid fabrication backlog, current positive rebar margin environment and momentum in the Polish operations, the company expects improved results in fiscal 2020.
Price Performance
Commercial Metals’ shares have fallen 0.2% over the past year, compared with the industry’s decline of 25.5%.
Zacks Rank & Stocks to Consider
Commercial Metals currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Kirkland Lake Gold Ltd. , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Agnico Eagle Mines has an expected earnings growth rate of 162.86% for 2019. The company’s shares have gained 50% in the past year.
Franco-Nevada Corporation has a projected earnings growth rate of 39.32% for the current year. The company’s shares have rallied 52% in a year’s time.
Kirkland Lake Gold has an estimated earnings growth rate of 71.32% for the ongoing year. Its shares have appreciated 123% in the past year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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