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Ternium (TX) to Report Q1 Earnings: What's in the Cards?

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Ternium S.A. (TX - Free Report) is slated to release first-quarter 2021 results after the closing bell on Apr 27. Benefits of higher steel prices and healthy shipments are likely to reflect on its first-quarter results.

The Luxembourg-based company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 197.8%. It posted an earnings surprise of roughly 83.5% in the last reported quarter.

The stock has rallied 180.9% in the past year compared with the industry’s 159.4% rise.

 


 

 

Let’s see how things are shaping up for this announcement.

Some Factors at Play

The company is likely to have benefited from higher prices and stable shipments in the first quarter. Ternium, in its fourth-quarter call, said that it expects EBITDA to increase in the first quarter on a sequential comparison basis on higher realized steel prices and steady shipments. The company is expected to have benefited from healthy shipments in Mexico, its main steel market. Shipments are also likely to have been supported by strong demand from industrial customers. Strength in electronics, automotive, household appliances and HVAC industries and an improvement in the construction market are expected to have supported demand.

The company also saw shipments to climb 20% sequentially in the fourth quarter in the Southern Region on the back of higher demand for durable goods and construction materials in Argentina. The trend is likely to have continued in the first quarter.

Moreover, Ternium benefited from higher steel prices in its major markets in the fourth quarter. The pricing strength, backed by heathy steel prices in the North American market, is expected to have continued in the March quarter and supported the company’s top line.

 

Ternium S.A. Price and EPS Surprise

 

Ternium S.A. Price and EPS Surprise

Ternium S.A. price-eps-surprise | Ternium S.A. Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for Ternium this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Ternium is -0.87%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $2.29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ternium currently carries a Zacks Rank #1.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

AdvanSix Inc. (ASIX - Free Report) , scheduled to release earnings on Apr 30, has an Earnings ESP of +7.69% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 3, has an Earnings ESP of +2.67% and carries a Zacks Rank #3.

United States Steel Corporation (X - Free Report) , scheduled to release earnings on Apr 29, has an Earnings ESP of +29.67% and carries a Zacks Rank #3.

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