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Is a Beat in Store for Commercial Metals' (CMC) Q2 Earnings?

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Commercial Metals Company (CMC - Free Report) is scheduled to report second-quarter fiscal 2022 results on Mar 17, before the opening bell.

Which Way are the Estimates Headed?

The Zacks Consensus Estimate for the fiscal second-quarter revenues is pinned at $1.82 billion, suggesting growth of 24.3% from the prior-year quarter’s levels. The Zacks Consensus Estimate for earnings per share is pegged at $1.10 for the quarter, indicating a year-over-year increase of 66.7%.

Q1 Performance

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimates, but sales missed the same. The bottom and the top line increased year on year. Commercial Metals has a trailing four-quarter earnings surprise of 13.1%, on average.

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 Does Our Model Indicate?

Our proven model conclusively predicts 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 chances 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 +28.18%.

Zacks Rank: Commercial Metals currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors

Commercial Metals is likely to have benefited from robust demand for finished steel products across most of its end markets in North America and Europe, driven by the solid construction project pipeline and favorable demand from industrial end markets. The North America segment is likely to have benefited from strong rebar, merchant bar and wire rods demand. In Europe, the Polish construction market is growing on robust strength in the residential construction and infrastructure sectors. These factors coupled with a strong construction backlog in North America are likely to have supported the finished steel shipment volumes in the fiscal second quarter.

Commercial Metals’ network-optimization efforts and cost-reduction initiatives are likely to have contributed to margin performance during the quarter under review.  The company has been implementing price hikes across its mill products in response to the rapidly-rising scrap costs.

Price Performance

Commercial Metals’ shares have appreciated 47.1% in the past year compared with the industry’s growth of 22.6%.

Zacks Investment Research
Image 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.

Advanced Micro Devices, Inc. (AMD - Free Report) currently has an Earnings ESP of +1.46% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings have moved up in the past 60 days and is currently pegged at 91 cents per share. This suggests year-over-year growth of 75%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $5 billion, indicating an increase of 45.1% from the prior-year quarter’s levels. Advanced Micro Devices has a trailing four-quarter earnings surprise of 17.03%, on average.

Credicorp Ltd. (BAP - Free Report) currently has an Earnings ESP of +7.29% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is currently pegged at $3.52 per share, suggesting 55.7% growth from the year-ago quarter’s tally. The same has moved up in the past 60 days.

The Zacks Consensus Estimate for Credicorp’s quarterly revenues is pinned at $1.06 billion, indicating year-over-year increase of 16.6%.

Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.35% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter fiscal 2022 earnings have undergone upward revisions in the past 60 days and is currently pegged at $2.97 per share. This suggests year-over-year growth of 8%.

The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $49.6 billion, indicating year-over-year growth of 9.5%. COST has a trailing four-quarter earnings surprise of 13.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.