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What's in the Offing for Commercial Metals' (CMC) Q3 Earnings?

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Commercial Metals Company (CMC - Free Report) is scheduled to report third-quarter fiscal 2021 (ended as of May 31, 2021) results on Jun 17, before the opening bell.

Which Way are the Estimates Headed?

The Zacks Consensus Estimate for fiscal third-quarter revenues is pinned at $1,677 million, suggesting growth of 25% from the prior-year period. The Zacks Consensus Estimate for earnings per share is pegged at 77 cents for the quarter, indicating a year-over-year increase of 30.5%.

Q2 Performance

In the last reported quarter, the company’s top- and bottom-line figures increased year on year. While the bottom line beat the consensus mark, the top line figure missed the same. The company has a trailing four quarters average earnings surprise of 38.08%.

Key Factors

Commercial Metals is likely to have benefited from solid construction and infrastructure activity during the fiscal third quarter. The North America segment might have benefited from increased spending on the residential and construction sector, continued recovery in the manufacturing sector and strong highway infrastructure activities, fueling robust demand for rebar and long product steel.

The finished steel volumes for North America and Europe operations are expected to have witnessed strong seasonal trends in the fiscal third quarter due to the commencement of the spring and summer construction seasons. Surging demand for merchant and wire rod products in the Central European markets, and recovery in the industrial end markets in the region are likely to have supported the Europe segment during the fiscal third quarter.

Moreover, Commercial Metals’ margin is anticipated to have benefited from its focus on network optimization as well as price rise across the company’s mill products in response to the rapidly-rising scrap costs.

Commercial Metals Company Price and EPS Surprise

Commercial Metals Company Price and EPS Surprise

Commercial Metals Company price-eps-surprise | Commercial Metals Company Quote

What Our Model Indicates?

Our proven model doesn’t conclusively predict an earnings beat for Commercial Metals this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Commercial Metals is 0.00%.

Zacks Rank: Commercial Metals currently carries a Zacks Rank of 2.

Price Performance

Commercial Metals’ shares have appreciated 83.7% in the past year compared with the industry’s rally of 156.1%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks Worth a Look

Here are some stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Winnebago Industries, Inc. (WGO - Free Report) has an Earnings ESP of +16.57% and holds a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Micron Technology, Inc. (MU - Free Report) has an Earnings ESP of +6.83% and currently carries a Zacks Rank of 2.

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.08% and carries a Zacks Rank #3, currently.

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