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Ternium (TX) to Report Q2 Earnings: What's in the Cards?

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Ternium S.A. (TX - Free Report) is slated to release second-quarter 2022 results after the closing bell on Aug 2. Benefits of higher steel prices and healthy shipments are likely to reflect on its second-quarter results.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 22.4%. It posted an earnings surprise of roughly 35.3% in the last reported quarter.

The stock has lost 28.1% in the past year compared with the industry’s 23.4% decline.

 

Zacks Investment Research
Image Source: Zacks Investment Research



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

What do the Estimates Indicate?

The Zacks Consensus Estimate for Ternium’s second-quarter consolidated sales is currently pegged at $4,573.6 million, which calls for an increase of 16.7% from the year-ago quarter’s tally.

Some Factors at Play

The company is likely to have benefited from higher prices and improved shipment volumes in the June quarter. Shipments in Mexico, in the second quarter, are likely to have been driven by strong demand from industrial customers and an improvement in automotive. Healthy demand for construction materials, energy and automotive are expected to have supported shipments in Argentina.

Ternium is also expected to have benefited from higher realized steel prices in the second quarter. Higher realized prices are likely to have driven its margins.

However, higher costs are likely to have affected the company’s performance in the June quarter. Ternium is seeing higher costs for many of its raw materials along with increased slab costs.

 

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 0.00%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $3.66. 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 #5 (Strong Sell).

Stocks That Warrant a Look

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

Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +11.87% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 11.8% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.

Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1.

The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.

Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.


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

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