Commercial Metals Company CMC reported adjusted earnings per share (EPS) of 78 cents for first-quarter fiscal 2025 (ended Nov. 30, 2024), in line with the Zacks Consensus Estimate. The company’s earnings fell 47.7% from the prior-year quarter’s $1.49.
In the first quarter of fiscal 2024, CMC made an adjustment of $11.6 million for mill operational commissioning costs. CMC has decided that from the periods commencing after Feb. 29, 2024, it will no longer include any adjustment for mill operational commissioning costs. Accordingly, Commercial Metals recast adjusted earnings for the prior-year quarter to $1.49. Including the adjustment, it previously stood at $1.63.
Counting one-time items, CMC reported a loss of $1.54 in first-quarter fiscal 2025 against the prior-year quarter’s EPS of $1.49.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Commercial Metals’ net sales in the reported quarter were $1.91 billion, down 4.7% from the year-ago quarter’s $2 billion. The reported figure surpassed the Zacks Consensus Estimate of $1.89 billion.
Commercial Metals Company Price, Consensus and EPS Surprise
Commercial Metals Company price-consensus-eps-surprise-chart | Commercial Metals Company Quote
The cost of goods sold in the quarter was down 0.1% from the year-ago quarter to $1.6 billion. The gross profit was down 22.8% from the year-ago quarter to roughly $308 million during this period. The core EBITDA was $211 million in the fiscal first quarter, down 32.8% from the year-ago quarter.Commercial Metals’ Q1 Segmental Performance
The North America Steel Group segment generated net sales of $1.52 billion in the fiscal first quarter compared with $1.59 billion in the prior-year quarter. We expected net sales of $1.51 billion for the quarter. The segment registered an adjusted EBITDA of around $188 million compared with the year-earlier quarter’s $267 million. Our model predicted an adjusted EBITDA of $181 million.
The Europe Steel Group segment’s revenues were $209 million, down 7% from the year-ago quarter. We expected net sales of $200 million for the quarter. The adjusted EBITDA was $25.8 million in the fiscal first quarter compared with the year-ago quarter’s $38.9 million. Our model predicted an adjusted EBITDA of a negative $0.1 million.
The Emerging Businesses Group segment generated net sales of around $169 million in the fiscal first quarter compared with $177 million in the prior-year quarter. We expected net sales of $187 million for the quarter. The segment registered an adjusted EBITDA of $22.7 million compared with the year-earlier quarter’s $30.9 million. Our model predicted an adjusted EBITDA of $33.9 million.
CMC’s Q1 Cash Flow & Balance Sheet Updates
Commercial Metals reported cash and cash equivalents of roughly $856 million at the end of first-quarter fiscal 2025 compared with $858 million at the end of fiscal 2024. CMC’s long-term debt was $1.15 billion at the end of the first quarter of fiscal 2025, flat with the end of fiscal 2024. Cash generated from operating activities was roughly $213 million in the quarter compared with $261 million in the prior-year quarter.
CMC repurchased shares worth $50.4 million in the quarter under review. As of Nov 30, 2024, $353.4 million were under the current share buyback authorization.
Commercial Metals’ FY25 Outlook
The company expects second-quarter fiscal 2025 consolidated financial results to decline sequentially.
In the North America Steel Group segment, finished steel shipments are expected to follow normal seasonal trends in the fiscal second quarter. However, the adjusted EBITDA margin is expected to decline from that reported in the fiscal first quarter due to lower margins over scrap costs on steel and downstream products.
Europe Steel Group’s adjusted EBITDA is anticipated to be in line with last year's comparable quarter. Emerging Businesses Group’s results are likely to bear the brunt of seasonality.
CMC Stock’s Price Performance
The company’s shares have lost 2.7% in the past year compared with the industry’s 31.5% fall.
Image Source: Zacks Investment Research
Commercial Metals’ Zacks Rank
CMC currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Steel Producers Awaiting Results
L.B. Foster Company FSTR is expected to release its fourth-quarter 2024 results soon.
The Zacks Consensus Estimate for FSTR’s earnings per share is pegged at 30 cents for the fourth quarter, suggesting growth from the loss of 4 cents reported in the year-ago quarter. The Zacks Consensus Estimate for total sales is pinned at $132.9 million, indicating a year-over-year decrease of 1.5%.
Gerdau S.A. GGB is anticipated to release fourth-quarter 2024 results soon.
The Zacks Consensus Estimate for GGB’s earnings per share is pegged at 10 cents for the fourth quarter, implying growth of 66.7% from the year-ago reported figure. The Zacks Consensus Estimate for total sales is pinned at $2.7 billion, indicating a year-over-year decrease of 8.2%.
Ternium S.A. TX is expected to release fourth-quarter 2024 results soon.
The Zacks Consensus Estimate for TX’s earnings per share is pegged at 55 cents for the fourth quarter, suggesting a decline of 74% from the year-ago reported figure. The Zacks Consensus Estimate for the total sales is pinned at $4.2 billion, indicating a year-over-year decrease of 15%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gerdau S.A. (GGB): Free Stock Analysis Report
Ternium S.A. (TX): Free Stock Analysis Report
Commercial Metals Company (CMC): Free Stock Analysis Report
L.B. Foster Company (FSTR): Free Stock Analysis Report
/A%20Lucid%20Motors%20vehicle%20parked%20in%20front%20of%20a%20showroom_%20Image%20by%20Michael%20Berlfein%20via%20Shutterstock_.jpg)
/Broadcom%20Inc%20logo%20on%20phone%20and%20site-by%20Majahid%20Mottakin%20via%20Shutterstock.jpg)
/Tesla%20Inc%20logo%20by-%20baileystock%20via%20iStock.jpg)
