Zacks Research Has Negative Outlook for CMC Q4 Earnings

Key Points

• Zacks Research cut its Q4 2027 EPS estimate for Commercial Metals to $2.09 (from $2.10) and maintains a Hold rating, while forecasting FY2028 EPS of $7.03 versus a current consensus full‑year estimate of $6.75.
• In the most recent quarter CMC reported EPS of $1.16, missing estimates by $0.12, but revenue of $2.13 billion topped forecasts and rose 21.5% year‑over‑year, a mixed earnings performance.
• Analysts carry a Moderate Buy consensus with an average target of $71.50; the stock trades near $68 with a P/E around 15 and the company recently raised its quarterly dividend to $0.20 (≈1.2% yield).

Commercial Metals Company (NYSE:CMC - Free Report) - Analysts at Zacks Research decreased their Q4 2027 earnings estimates for shares of Commercial Metals in a research note issued on Wednesday, April 22nd. Zacks Research analyst Team now forecasts that the basic materials company will post earnings of $2.09 per share for the quarter, down from their previous forecast of $2.10. Zacks Research currently 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 2028 earnings at $1.43 EPS and FY2028 earnings at $7.03 EPS.

Several other equities research analysts also recently weighed in on CMC. KeyCorp began coverage on Commercial Metals in a report on Wednesday, March 25th. They issued a "sector weight" rating for the company. Jefferies Financial Group set a $85.00 price objective on shares of Commercial Metals and gave the company a "buy" rating in a research report on Thursday, January 8th. Wall Street Zen lowered shares of Commercial Metals from a "strong-buy" rating to a "buy" rating in a research note on Saturday, April 4th. Wells Fargo & Company decreased their price target on shares of Commercial Metals from $80.00 to $77.00 and set an "overweight" rating for the company in a report on Friday, March 27th. Finally, Morgan Stanley lifted their price objective on shares of Commercial Metals from $68.00 to $85.00 and gave the stock an "overweight" rating in a research note on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $71.50.

Commercial Metals Stock Down 2.2%

Commercial Metals stock opened at $67.99 on Friday. The business has a fifty day moving average price of $67.07 and a 200-day moving average price of $67.34. Commercial Metals has a 1-year low of $43.01 and a 1-year high of $84.87. The stock has a market capitalization of $7.54 billion, a price-to-earnings ratio of 15.14, a PEG ratio of 0.41 and a beta of 1.47. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.38 and a quick ratio of 1.55.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its 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 analyst estimates of $2.10 billion. Commercial Metals had a net margin of 6.02% and a return on equity of 13.54%. Commercial Metals's revenue was up 21.5% on a year-over-year basis. During the same quarter last year, the business earned $0.26 earnings per share.

Institutional Investors Weigh In On Commercial Metals

Hedge funds have recently bought and sold shares of the stock. Artemis Investment Management LLP acquired a new position in shares of Commercial Metals in the 4th quarter valued at $103,962,000. Norges Bank purchased a new stake in Commercial Metals during the fourth quarter worth $97,983,000. Vaughan Nelson Investment Management L.P. acquired a new stake in Commercial Metals during the third quarter valued at $54,394,000. Encompass Capital Advisors LLC purchased a new position in Commercial Metals in the fourth quarter valued at $41,523,000. Finally, Merewether Investment Management LP purchased a new stake in shares of Commercial Metals during the 3rd quarter worth about $26,847,000. Hedge funds and other institutional investors own 86.90% of the company's stock.

Insider Activity

In related news, insider Jennifer J. Durbin sold 25,050 shares of the firm's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total transaction of $2,003,248.50. Following the sale, the insider directly owned 52,880 shares of the company's stock, valued at $4,228,813.60. This trade represents a 32.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.62% of the stock is currently owned by company insiders.

Commercial Metals Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Monday, April 6th were paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Monday, April 6th. This is an increase from Commercial Metals's previous quarterly dividend of $0.18. Commercial Metals's dividend payout ratio (DPR) is 16.04%.

Commercial Metals Company Profile

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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