Commercial Metals (NYSE:CMC) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Commercial Metals (NYSE:CMC) reported $1.37 EPS for the quarter, exceeding the consensus estimate of $1.32 by $0.05.
• The company announced a quarterly dividend of $0.18, with an ex-dividend date on October 30th and a yield of 1.2%.
• Analysts have a consensus rating of "Moderate Buy" for Commercial Metals, with a target price averaging $61.39.

Commercial Metals (NYSE:CMC - Get Free Report) released its quarterly earnings results on Thursday. The basic materials company reported $1.37 EPS for the quarter, topping the consensus estimate of $1.32 by $0.05, Zacks reports. Commercial Metals had a return on equity of 7.45% and a net margin of 0.48%.

Commercial Metals Stock Down 1.4%

Commercial Metals stock opened at $59.59 on Thursday. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.00 and a current ratio of 2.86. The firm has a market capitalization of $6.67 billion, a price-to-earnings ratio of 192.21, a price-to-earnings-growth ratio of 2.06 and a beta of 1.32. Commercial Metals has a fifty-two week low of $37.92 and a fifty-two week high of $64.53. The stock's fifty day moving average is $57.75 and its two-hundred day moving average is $51.27.

Commercial Metals Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 13th. Shareholders of record on Thursday, October 30th will be issued a $0.18 dividend. The ex-dividend date of this dividend is Thursday, October 30th. This represents a $0.72 annualized dividend and a yield of 1.2%. Commercial Metals's dividend payout ratio is 232.26%.

Institutional Trading of Commercial Metals

Large investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its holdings in Commercial Metals by 84.1% in the second quarter. EverSource Wealth Advisors LLC now owns 1,550 shares of the basic materials company's stock valued at $76,000 after purchasing an additional 708 shares during the last quarter. Amundi boosted its stake in shares of Commercial Metals by 13.3% during the first quarter. Amundi now owns 2,480 shares of the basic materials company's stock valued at $114,000 after acquiring an additional 291 shares during the last quarter. Captrust Financial Advisors boosted its stake in shares of Commercial Metals by 4.4% during the second quarter. Captrust Financial Advisors now owns 4,813 shares of the basic materials company's stock valued at $235,000 after acquiring an additional 202 shares during the last quarter. M&T Bank Corp boosted its stake in shares of Commercial Metals by 25.8% during the second quarter. M&T Bank Corp now owns 5,558 shares of the basic materials company's stock valued at $272,000 after acquiring an additional 1,140 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its stake in shares of Commercial Metals by 100.3% during the second quarter. Geneos Wealth Management Inc. now owns 6,751 shares of the basic materials company's stock valued at $330,000 after acquiring an additional 3,380 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on CMC. Wolfe Research raised Commercial Metals from a "peer perform" rating to an "outperform" rating in a research report on Friday, June 20th. Weiss Ratings reissued a "hold (c)" rating on shares of Commercial Metals in a report on Wednesday, October 8th. JPMorgan Chase & Co. boosted their target price on Commercial Metals from $54.00 to $63.00 and gave the company a "neutral" rating in a report on Monday. Jefferies Financial Group reissued a "buy" rating on shares of Commercial Metals in a report on Friday, June 20th. Finally, Bank of America boosted their target price on Commercial Metals from $60.00 to $70.00 and gave the company a "buy" rating in a report on Monday, September 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $61.39.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.

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