Zacks Research Issues Pessimistic Estimate for CMC Earnings

Key Points

• Zacks Research cut its Q3 2026 EPS estimate for Commercial Metals to $1.72 from $1.78, while keeping a Hold rating on the stock.
• Commercial Metals recently reported Q2 earnings of $1.16 per share, missing analyst expectations of $1.28, even though revenue came in slightly above estimates at $2.13 billion and rose 21.5% year over year.
• Despite the cautious near-term view, analysts still see moderate upside potential: the stock has a consensus Moderate Buy rating with an average price target of $74.80, and the company recently raised its quarterly dividend to $0.20 per share.

Commercial Metals Company (NYSE:CMC - Free Report) - Zacks Research reduced their Q3 2026 earnings per share (EPS) estimates for Commercial Metals in a research note issued on Friday, May 15th. Zacks Research analyst Team now forecasts that the basic materials company will post earnings of $1.72 per share for the quarter, down from their prior estimate of $1.78. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Commercial Metals' current full-year earnings is $6.51 per share. Zacks Research also issued estimates for Commercial Metals' Q4 2026 earnings at $1.84 EPS, FY2026 earnings at $6.55 EPS, Q1 2027 earnings at $1.61 EPS, Q2 2027 earnings at $1.33 EPS, Q3 2027 earnings at $1.74 EPS, Q4 2027 earnings at $2.02 EPS, FY2027 earnings at $6.70 EPS, Q1 2028 earnings at $1.61 EPS, Q2 2028 earnings at $1.38 EPS and FY2028 earnings at $6.77 EPS.

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

A number of other equities analysts also recently commented on CMC. Wells Fargo & Company lowered their price objective on Commercial Metals from $80.00 to $77.00 and set an "overweight" rating for the company in a research report on Friday, March 27th. KeyCorp assumed coverage on Commercial Metals in a research report on Wednesday, March 25th. They set a "sector weight" rating for the company. The Goldman Sachs Group assumed coverage on Commercial Metals in a research report on Wednesday, April 1st. They set a "neutral" rating and a $74.00 price objective for the company. Wall Street Zen downgraded Commercial Metals from a "strong-buy" rating to a "buy" rating in a research report on Saturday, April 4th. Finally, JPMorgan Chase & Co. lowered their price objective on Commercial Metals from $83.00 to $78.00 and set an "overweight" rating for the company in a research report on Tuesday, April 14th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $74.80.

Commercial Metals Stock Performance

Shares of Commercial Metals stock opened at $71.25 on Monday. Commercial Metals has a one year low of $45.50 and a one year high of $84.87. The company has a market cap of $7.90 billion, a PE ratio of 15.87, a P/E/G ratio of 0.41 and a beta of 1.49. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.55 and a current ratio of 2.38. The business has a 50-day simple moving average of $65.51 and a 200-day simple moving average of $68.53.

Institutional Investors Weigh In On Commercial Metals

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Root Financial Partners LLC purchased a new stake in Commercial Metals in the third quarter valued at approximately $25,000. Rothschild Investment LLC lifted its stake in Commercial Metals by 169.6% in the third quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company's stock valued at $29,000 after buying an additional 324 shares during the last quarter. Global Retirement Partners LLC lifted its stake in Commercial Metals by 110.7% in the fourth quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company's stock valued at $40,000 after buying an additional 301 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in Commercial Metals in the fourth quarter valued at approximately $54,000. Finally, Caitong International Asset Management Co. Ltd lifted its stake in Commercial Metals by 617.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company's stock valued at $58,000 after buying an additional 716 shares during the last quarter. Hedge funds and other institutional investors own 86.90% of the company's stock.

Commercial Metals Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Monday, April 6th were paid a dividend of $0.20 per share. The ex-dividend date was Monday, April 6th. This is a positive change from Commercial Metals's previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a yield of 1.1%. Commercial Metals's dividend payout ratio (DPR) is presently 16.04%.

Key Headlines Impacting Commercial Metals

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Despite the estimate cuts, Zacks still expects Commercial Metals to generate solid earnings over the next several years, with FY2026 and FY2027 estimates remaining near or above current consensus levels, suggesting the long-term earnings backdrop is still constructive.
• Neutral Sentiment: Commercial Metals continues to trade with a relatively attractive valuation profile, and recent commentary has focused more on whether the stock remains attractive after a strong multi-year run than on any major change in business fundamentals. Article Title
• Negative Sentiment: Zacks Research lowered EPS estimates for several periods, including Q1 2027, Q2 2027, Q3 2027, Q4 2027, Q1 2028, Q2 2028, FY2027, FY2028, and FY2026, reinforcing a more cautious near-term earnings outlook and contributing to the stock’s decline.

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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