Commercial Metals Company (NYSE:CMC) Quarterly Earnings Insight
- Earnings per share (EPS) of $0.83 and projected revenue of $1.87 billion for the first quarter ending in November 2024.
- Analysts predict a decline in earnings, with a focus on the company's price-to-earnings (P/E) ratio of 11.79 and price-to-sales ratio of 0.72.
- CMC showcases a strong financial foundation with a debt-to-equity ratio of 0.28 and a current ratio of 3.94.
Commercial Metals Company (NYSE:CMC) is a prominent player in the steel and metal industry, known for its production and recycling of steel and metal products. The company operates in a competitive market, with key competitors including Nucor Corporation and Steel Dynamics. CMC's diverse operations span across the United States and Europe, providing a wide range of products to various industries.
On January 13, 2025, CMC will release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $0.83 and projected revenue of $1.87 billion. These figures are crucial as they provide insights into the company's financial health and performance during the first quarter, which ended in November 2024. Analysts are keenly observing these metrics to gauge CMC's market position.
Despite the anticipation, analysts predict a decline in CMC's earnings, suggesting the company may not meet the necessary factors for an earnings beat. This expectation is based on the company's current financial metrics, which include a price-to-earnings (P/E) ratio of 11.79 and a price-to-sales ratio of 0.72. These ratios indicate the valuation investors place on CMC's earnings and sales.
CMC's enterprise value to sales ratio is 0.76, slightly higher when accounting for debt and cash, while the enterprise value to operating cash flow ratio is 6.69. These figures reflect CMC's ability to generate cash from operations relative to its overall valuation. The company's earnings yield stands at 8.48%, offering a return on investment for shareholders.
Financially, CMC maintains a conservative debt-to-equity ratio of 0.28, indicating prudent use of debt in its capital structure. The company also boasts a strong current ratio of 3.94, highlighting its ability to cover short-term liabilities with current assets. These metrics underscore CMC's solid financial foundation as it approaches its earnings release.
| Symbol | Price | %chg |
|---|---|---|
| 005490.KS | 253000 | 0 |
| TXAR.BA | 688 | 0 |
| 5401.T | 2982.5 | 0 |
| 004020.KS | 22950 | 0 |
Commercial Metals Company (NYSE: CMC) Earnings Report Highlights
- Commercial Metals Company (NYSE:CMC) reported earnings per share (EPS) of $0.78 (adjusted EPS which excluded the $265 million after-tax litigation expense), missing the estimated $0.83 but generated revenue of approximately $1.91 billion, surpassing the estimated $1.83 billion.
- The company faced a net loss of $175.7 million due to a $265 million litigation expense, contrasting sharply with the previous year's net earnings of $176.3 million.
- CMC's consolidated core EBITDA for the quarter was $210.7 million, with a core EBITDA margin of 11.0%, and generated $213 million in cash flow from operating activities.
Commercial Metals Company (NYSE:CMC) is a prominent player in the steel and metal industry, known for its production and recycling of steel and metal products. The company operates in North America and Europe, providing a range of products including rebar, wire rod, and merchant bar. CMC competes with other industry giants like Nucor Corporation and Steel Dynamics.
On January 6, 2025, CMC reported earnings per share (EPS) of $0.78 (adjusted EPS which excluded the $265 million after-tax litigation expense), which fell short of the estimated $0.83. Despite this, the company generated revenue of approximately $1.91 billion, surpassing the estimated $1.83 billion. This performance aligns with the Zacks Consensus Estimate, although it marks a significant decrease from the previous year's EPS of $1.63.
The company's first-quarter fiscal 2025 results revealed a net loss of $175.7 million, or $1.54 per diluted share, primarily due to a $265 million litigation expense. In contrast, the previous year's first quarter saw net earnings of $176.3 million, or $1.49 per diluted share. Despite the loss, CMC achieved adjusted earnings of $88.5 million, or $0.78 per diluted share.
CMC's consolidated core EBITDA for the quarter was $210.7 million, with a core EBITDA margin of 11.0%. Late-season construction activity contributed to growth in North American finished steel shipment volumes, although margins were pressured by declines in average steel and downstream product pricing. The North American downstream backlog volumes remained stable, with a strong pipeline for future projects.
The company generated $213 million in cash flow from operating activities, equaling 101% of its consolidated core EBITDA. CMC returned $71 million to shareholders through dividends and share buybacks. The company continues to focus on its strategic growth plan, including organic growth investments and its "TAG" program, which is expected to yield financial benefits in fiscal 2025.
