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Commercial Metals (CMC) to Change Its Segmental Reporting
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Commercial Metals Company (CMC - Free Report) announced that commencing with the first quarter of fiscal 2024, it will release its financial results with a realigned reporting structure. The altered segmental reporting better reflects the expansion of the company's solution offerings beyond traditional steel products, as well as the rising relevance of non-steel solutions to CMC's financial results and prospects.
The company will now report under three segments — North America Steel Group, Europe Steel Group and Emerging Businesses Group.
North America Steel Group consists largely of CMC's former North America segment's recycling, steel mill, rebar fabrication, fence post manufacturing and post-tension cable operations. Europe Steel Group includes essentially all recycling, steel mill and steel fabrication operations that were previously part of the company's Europe segment.
Emerging Businesses Group will include the Tensar geogrid and Geopier, CMC Construction Services, Performance Reinforcing Steel, CMC Anchoring Systems, and Impact Metals operations. Except for the geogrid operations located outside of North America, which were included in the former Europe segment, these were reported under CMC's former North America segment.
Commercial Metals’ Corporate and Eliminations reporting remains unaltered.
The company's restructured reporting structure better reflects how it views operations. The decision to change segmental reporting was made to better represent the company's chief operating decision-maker's approach to performance evaluation, strategic decision-making and capital resource allocation.
Commercial Metals reported adjusted earnings per share (EPS) of $1.69 for fourth-quarter fiscal 2023, missing the Zacks Consensus Estimate of $1.84. The bottom line fell 31% from the prior-year quarter’s $2.45. Net sales in the reported quarter were $2,209 million compared with the year-ago quarter’s $2,407 million. The reported figure surpassed the Zacks Consensus Estimate of $2,096 million.
Price Performance
Shares of Commercial Metals have gained 1.3% in the past year compared with the industry’s growth of 29.4%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Commercial Metals currently sports a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. Shares of AXTA have gained 31% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. Shares of USAP have rallied 137% in the last year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in the last four quarters, the average earnings surprise being 25.6%. The company’s shares have gained 46% in the past year.
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Commercial Metals (CMC) to Change Its Segmental Reporting
Commercial Metals Company (CMC - Free Report) announced that commencing with the first quarter of fiscal 2024, it will release its financial results with a realigned reporting structure. The altered segmental reporting better reflects the expansion of the company's solution offerings beyond traditional steel products, as well as the rising relevance of non-steel solutions to CMC's financial results and prospects.
The company will now report under three segments — North America Steel Group, Europe Steel Group and Emerging Businesses Group.
North America Steel Group consists largely of CMC's former North America segment's recycling, steel mill, rebar fabrication, fence post manufacturing and post-tension cable operations. Europe Steel Group includes essentially all recycling, steel mill and steel fabrication operations that were previously part of the company's Europe segment.
Emerging Businesses Group will include the Tensar geogrid and Geopier, CMC Construction Services, Performance Reinforcing Steel, CMC Anchoring Systems, and Impact Metals operations. Except for the geogrid operations located outside of North America, which were included in the former Europe segment, these were reported under CMC's former North America segment.
Commercial Metals’ Corporate and Eliminations reporting remains unaltered.
The company's restructured reporting structure better reflects how it views operations. The decision to change segmental reporting was made to better represent the company's chief operating decision-maker's approach to performance evaluation, strategic decision-making and capital resource allocation.
Commercial Metals reported adjusted earnings per share (EPS) of $1.69 for fourth-quarter fiscal 2023, missing the Zacks Consensus Estimate of $1.84. The bottom line fell 31% from the prior-year quarter’s $2.45. Net sales in the reported quarter were $2,209 million compared with the year-ago quarter’s $2,407 million. The reported figure surpassed the Zacks Consensus Estimate of $2,096 million.
Price Performance
Shares of Commercial Metals have gained 1.3% in the past year compared with the industry’s growth of 29.4%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Commercial Metals currently sports a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , Universal Stainless & Alloy Products, Inc. (USAP - Free Report) and Alamos Gold Inc. (AGI - Free Report) . AXTA sports a Zacks Rank #1 (Strong Buy), and USAP and AGI carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. Shares of AXTA have gained 31% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. Shares of USAP have rallied 137% in the last year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in the last four quarters, the average earnings surprise being 25.6%. The company’s shares have gained 46% in the past year.