Back to top

Image: Bigstock

Commercial Metals (CMC) to Post Q3 Earnings: Is a Beat in Store?

Read MoreHide Full Article

Commercial Metals Company (CMC - Free Report) is scheduled to report third-quarter fiscal 2022 results on Jun 16, before the opening bell.

Which Way are the Estimates Headed?

The Zacks Consensus Estimate for the fiscal third-quarter revenues is pinned at $2.36 billion, suggesting growth of 28.1% from the prior-year quarter’s levels. The Zacks Consensus Estimate for earnings per share is pegged at $2.00 for the quarter, indicating a year-over-year increase of 92.3%.

Q2 Performance

In the last reported quarter, the company’s earnings and sales beat the Zacks Consensus Estimates and increased year over year. Commercial Metals has a trailing four-quarter earnings surprise of 15.9%, on average.

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 +10.00%.

Zacks Rank: Commercial Metals currently sports a Zacks Rank of 1. 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 product lines in the spring and summer construction season, supported by its growing downstream backlog and solid levels of new construction work entering the project pipeline. The North America segment is likely to have benefited from strong rebar, merchant bar and wire rods demand. In the Europe segment, the Polish construction market is growing on expanding manufacturing activity. These factors and a strong construction backlog in North America, new contract wins and strength across the key end markets in North America and Europe are likely to have supported the finished steel shipment volumes in the fiscal third 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 18.6% in the past year against the industry’s decline of 6.7%.

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.

AutoNation, Inc. (AN - Free Report) currently has an Earnings ESP of +2.15% and a Zacks Rank of 1. The Zacks Consensus Estimate for second-quarter 2022 earnings has moved up in the past 60 days and is currently pegged at $5.95 per share. This suggests year-over-year growth of 23.2%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $6.8 billion, indicating a decline of 1.6% from the prior-year quarter’s levels. AutoNation has a trailing four-quarter earnings surprise of 27.4%, on average.

F.N.B. Corporation (FNB - Free Report) currently has an Earnings ESP of +2.76% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at 30 cents per share, suggesting a 3.2% decline from the year-ago quarter’s tally. The same has moved up in the past 60 days.

The Zacks Consensus Estimate for F.N.B. Corp’s quarterly revenues is pinned at $332 million, indicating a year-over-year increase of 7.8%.

The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2023 earnings have undergone upward revisions in the past 60 days and is currently pegged at $1.27 per share. This suggests year-over-year growth of 6.7%.

The Zacks Consensus Estimate for Kroger’s quarterly revenues is pegged at $43.8 billion, indicating year-over-year growth of 6%. KR has a trailing four-quarter earnings surprise of 22%, on average.

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

Published in