Commercial Metals Earnings: Here’s Why the Stock is Down Now

Commercial Metals Company (NYSE:CMC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.4%.

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Commercial Metals Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 83.33% to $0.04 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Decreased 11.64% to $1.73 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Commercial Metals Company reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.18. It missed the average revenue estimate of $1.86 billion.

Quoting Management: Joe Alvarado, Chairman of the Board, President, and CEO, commented, “As anticipated, we experienced the normal seasonal effects of the winter and holiday months as well as the ongoing economic challenges in certain overseas markets. Despite economic weakness, particularly in international markets, we are pleased to report a sixth consecutive quarter of profitability.”

Key Stats (on next page)…

Revenue decreased 3.37% from $1.79 billion in the previous quarter. EPS decreased 85.71% from $0.28 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.37 to a profit $0.35. For the current year, the average estimate has moved up from a profit of $1.16 to a profit of $1.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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