Zacks Research Cuts Earnings Estimates for Commercial Metals

Key Points

• Zacks Research cut its Q1 2027 EPS estimate for Commercial Metals to $1.65 (from $1.67) and keeps a "Hold" rating, updating its FY2027 estimate to $6.91 versus a consensus full-year estimate of $6.75.
• Commercial Metals reported $1.16 EPS for the latest quarter, missing the $1.28 consensus by $0.12 while revenue climbed 21.5% year-over-year to $2.13 billion.
• Several analysts have trimmed price targets (e.g., Wells Fargo to $77, JPMorgan to $78), but the consensus remains a "Moderate Buy" with an average price target of $71.50 and the stock trading around $69.18.

Commercial Metals Company (NYSE:CMC - Free Report) - Zacks Research dropped their Q1 2027 earnings per share (EPS) estimates for Commercial Metals in a research report issued to clients and investors on Wednesday, April 22nd. Zacks Research analyst Team now expects that the basic materials company will earn $1.65 per share for the quarter, down from their previous forecast of $1.67. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Commercial Metals' current full-year earnings is $6.75 per share. Zacks Research also issued estimates for Commercial Metals' Q2 2027 earnings at $1.37 EPS, Q3 2027 earnings at $1.80 EPS, FY2027 earnings at $6.91 EPS and Q1 2028 earnings at $1.67 EPS.

CMC has been the topic of several other reports. Wells Fargo & Company reduced their price target on Commercial Metals from $80.00 to $77.00 and set an "overweight" rating on the stock in a research note on Friday, March 27th. JPMorgan Chase & Co. reduced their price target on Commercial Metals from $83.00 to $78.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 14th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Commercial Metals in a research note on Wednesday, January 21st. KeyCorp began coverage on Commercial Metals in a research note on Wednesday, March 25th. They issued a "sector weight" rating on the stock. Finally, Jefferies Financial Group set a $85.00 target price on Commercial Metals and gave the stock a "buy" rating in a report on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $71.50.

Commercial Metals Price Performance

Shares of CMC stock opened at $69.18 on Monday. The stock has a market cap of $7.67 billion, a price-to-earnings ratio of 15.41, a PEG ratio of 0.40 and a beta of 1.47. The business's fifty day moving average is $66.86 and its 200 day moving average is $67.53. Commercial Metals has a twelve month low of $43.01 and a twelve month high of $84.87. The company has a quick ratio of 1.55, a current ratio of 2.38 and a debt-to-equity ratio of 0.75.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its quarterly earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.12). The firm had revenue of $2.13 billion during the quarter, compared to analysts' expectations of $2.10 billion. Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.Commercial Metals's revenue for the quarter was up 21.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.26 earnings per share.

Commercial Metals Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Monday, April 6th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.2%. This is a positive change from Commercial Metals's previous quarterly dividend of $0.18. The ex-dividend date of this dividend was Monday, April 6th. Commercial Metals's dividend payout ratio is presently 16.04%.

Insider Buying and Selling

In other Commercial Metals news, insider Jennifer J. Durbin sold 25,050 shares of the business's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total value of $2,003,248.50. Following the sale, the insider directly owned 52,880 shares of the company's stock, valued at approximately $4,228,813.60. The trade was a 32.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.62% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp lifted its holdings in shares of Commercial Metals by 1.5% during the fourth quarter. State Street Corp now owns 6,361,477 shares of the basic materials company's stock valued at $440,341,000 after purchasing an additional 91,104 shares in the last quarter. Boston Partners lifted its holdings in shares of Commercial Metals by 1.9% during the third quarter. Boston Partners now owns 3,641,930 shares of the basic materials company's stock valued at $208,629,000 after purchasing an additional 67,139 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Commercial Metals by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company's stock valued at $202,626,000 after purchasing an additional 86,749 shares in the last quarter. American Century Companies Inc. lifted its holdings in shares of Commercial Metals by 6.6% during the third quarter. American Century Companies Inc. now owns 1,823,923 shares of the basic materials company's stock valued at $104,474,000 after purchasing an additional 112,267 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Commercial Metals by 4.8% during the third quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company's stock valued at $95,144,000 after purchasing an additional 76,365 shares in the last quarter. 86.90% of the stock is owned by institutional investors.

About Commercial Metals

Commercial Metals Company NYSE: CMC is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.

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