Commercial Metals (NYSE:CMC) Posts Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Commercial Metals beat quarterly expectations: The company reported EPS of $2.09, exceeding estimates by $0.14, while revenue reached $2.66 billion versus the $2.58 billion consensus.
• Shareholders will receive a quarterly dividend of $0.20 per share, equivalent to $0.80 annually and a 1.2% yield. The board also authorized a $600 million share-repurchase program covering up to 7.5% of outstanding shares.
• Analysts maintain a “Moderate Buy” consensus on CMC, with nine Buy ratings and six Holds and an average price target of $80.27; the stock opened at $65.26 following the results.

Commercial Metals (NYSE:CMC - Get Free Report) released its earnings results on Thursday. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.14, FiscalAI reports. The company had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.58 billion. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%.

Commercial Metals Stock Up 0.8%

Shares of NYSE CMC opened at $65.26 on Thursday. The company has a current ratio of 2.33, a quick ratio of 1.54 and a debt-to-equity ratio of 0.73. The stock has a market capitalization of $7.22 billion, a PE ratio of 12.29, a price-to-earnings-growth ratio of 0.25 and a beta of 1.53. The stock's fifty day simple moving average is $67.17 and its two-hundred day simple moving average is $68.27. Commercial Metals has a 12-month low of $53.08 and a 12-month high of $84.87.

Commercial Metals Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 11th. Shareholders of record on Wednesday, October 28th will be issued a dividend of $0.20 per share. The ex-dividend date is Wednesday, October 28th. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. Commercial Metals's dividend payout ratio is currently 15.07%.

Insider Activity

In related news, Director John McPherson purchased 1,390 shares of Commercial Metals stock in a transaction dated Thursday, August 13th. The stock was purchased at an average cost of $71.92 per share, with a total value of $99,968.80. Following the transaction, the director owned 21,927 shares in the company, valued at approximately $1,576,989.84. The trade was a 6.77% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.62% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on CMC. Zacks Research upgraded Commercial Metals from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Bank of America reduced their price objective on Commercial Metals from $84.00 to $78.00 and set a "buy" rating on the stock in a research note on Thursday, July 9th. Weiss Ratings cut shares of Commercial Metals from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, October 2nd. BMO Capital Markets raised their price target on Commercial Metals from $77.00 to $80.00 and gave the stock a "market perform" rating in a research note on Thursday, August 6th. Finally, BNP Paribas Exane upgraded shares of Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 price objective for the company in a report on Wednesday, July 8th. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Commercial Metals has a consensus rating of "Moderate Buy" and an average price target of $80.27.

Commercial Metals announced that its board has authorized a share repurchase program on Wednesday, August 5th that authorizes the company to repurchase $600.00 million in outstanding shares. This buyback authorization authorizes the basic materials company to reacquire up to 7.5% of its shares through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Commercial Metals Company Profile

Commercial Metals Company NYSE: CMC is a steel and metals manufacturer, fabricator and recycler headquartered in Irving, Texas. Founded in 1915, the company operates a vertically integrated business that collects and processes ferrous scrap, produces steel and supplies products used in construction and infrastructure projects.

CMC's product portfolio includes reinforcing bar, merchant bar, wire rod, structural components and other steel products. Through its fabrication and construction services, the company also processes and prepares reinforcing steel for commercial, industrial, transportation and other building projects.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.