Commercial Metals Earnings: What Investors Should Watch

Commercial Metals (NYSE:CMC) will report earnings before markets open on Thursday, March 28th. Commercial Metals Company and its subsidiaries manufacture, recycle, and market steel and metal products and related materials. The Company markets and trades primary and secondary metals, steel, ores, concentrates, industrial minerals, ferroalloys, chemicals, and other materials used in a variety of industries.

Here is your Cheat Sheet to Commercial Metals Earnings:

Earnings Expectations: Analysts expect earnings of $0.18 per share on revenues of $1.86 billion. Currently, the company’s P/E ratio stands at 12.82.

Analyst Trends:

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 is a profit of $1.19, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Commercial Metals has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 9,897 6,409 6,277 7,863 7,828
Diluted EPS ($) 1.97 0.18 -1.81 -1.12 1.78

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Nov. 30, 2011 Feb. 29, 2012 May. 31, 2012 Aug. 31, 2012 Nov. 30, 2012
Revenue ($) in millions 1,987 1,957 2,007 1,878 1,789
Diluted EPS ($) 0.93 0.25 0.35 0.25 0.42

Past Performance:
Commercial Metals has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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