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) Earnings Beat Estimates in Q1, Up Y/Y
Read MoreHide Full Article
Commercial Metals Company (CMC - Free Report) reported first-quarter fiscal 2022 (ended Nov 30, 2021) 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%.
Commercial Metals Company Price, Consensus and EPS Surprise
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.
Price Performance
Commercial Metals’ shares have gained 60.7% in the past year compared with the industry’s growth of 31.5%.
Some other top-ranked stocks from the basic materials space include The Chemours Company (CC - Free Report) , Haynes International, Inc. (HAYN - Free Report) and AdvanSix Inc. (ASIX - Free Report) . While Chemours and Haynes sport a Zacks Rank #1, AdvanSix carries a Zacks Rank #2 (Buy).
Chemours has an expected earnings growth rate of 104% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised upward by 10% in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 34.2%. CC has gained 22.8% over a year.
Haynes has an expected earnings growth rate of 298.6% for fiscal 2022. The Zacks Consensus Estimate for its fiscal 2022 earnings has been revised upward by 53.2% in the past 60 days.
Haynes beat the Zacks Consensus Estimate for earnings in three of the four trailing quarters, the average surprise being 83.1%. HAYN’s shares have rallied 76.7% in a year.
AdvanSix has an expected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 14.1% in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 47%. ASIX’s shares have soared 127.6% over a year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Commercial Metals (CMC) Earnings Beat Estimates in Q1, Up Y/Y
Commercial Metals Company (CMC - Free Report) reported first-quarter fiscal 2022 (ended Nov 30, 2021) 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%.
Commercial Metals Company Price, Consensus and EPS Surprise
Commercial Metals Company price-consensus-eps-surprise-chart | Commercial Metals Company Quote
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.
Price Performance
Commercial Metals’ shares have gained 60.7% in the past year compared with the industry’s growth of 31.5%.
Zacks Rank & Other Stocks to Consider
Commercial Metals currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks from the basic materials space include The Chemours Company (CC - Free Report) , Haynes International, Inc. (HAYN - Free Report) and AdvanSix Inc. (ASIX - Free Report) . While Chemours and Haynes sport a Zacks Rank #1, AdvanSix carries a Zacks Rank #2 (Buy).
Chemours has an expected earnings growth rate of 104% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised upward by 10% in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 34.2%. CC has gained 22.8% over a year.
Haynes has an expected earnings growth rate of 298.6% for fiscal 2022. The Zacks Consensus Estimate for its fiscal 2022 earnings has been revised upward by 53.2% in the past 60 days.
Haynes beat the Zacks Consensus Estimate for earnings in three of the four trailing quarters, the average surprise being 83.1%. HAYN’s shares have rallied 76.7% in a year.
AdvanSix has an expected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 14.1% in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 47%. ASIX’s shares have soared 127.6% over a year.