Commercial Metals Company (NYSE: CMC) has confirmed that it will release its fiscal Q1 2022 earnings results on Monday, January 10, 2022, before market open.
What to look for
The company is expected to post a YoY earnings increase in higher revenue when it delivers its results for the quarter ended November 2021. Last year the company was on fire following re recovery of global markets and increasing output and input prices. Most importantly, the company delivers robust earnings and has considerably deleveraged its balance sheet and announced an acquisition investment. For full-year 2021, the company had sales of $6.73 billion, with EBITDA improving to $754 million leading to earnings power recovery.
Earnings: Stockearning’s Estimated EPS for the current quarter under review is expected to be around $1.3 per share, representing a YoY improvement of 124.1%. In the fourth quarter, the company reported earnings from operations of $152.3 million or $1.24 per share on a diluted basis. Full-year earnings were $412.9 million or $3.38 per diluted share. Historical EPS Performance for the past 12 quarters shows that the company has beat estimates ten times (83%) and missed twice (16%).
Revenue: Revenue for the current quarter is expected to be around $2.05 billion representing a YoY increase of 47.3%. In the fourth quarter, the company reported net sales of $2 billion relative to $1.4 billion a year ago.
Stock movement: CMC shares have gained 11.8% % since the company released its last quarter earnings. Interestingly in the last 45 quarters, CMC shares have been UP 25 times. So, the historical price reaction suggests a 55% probability of the share price going UP once the company reports its fiscal Q1 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
Citi analyst Alexander Hacking has lifted commercial Metals’ price target from $34 to $38 and maintained a Hold rating on the stock. For realized scrap and steel prices, the analyst adjusted his model. In a research note, Hacking told investors that the upgrade is mostly due to improving rebar metal margins during the quarter. He maintained a Hold rating on the stock based on Commercial Metals' immediate term outlook, which "looks fairly positive," combined with a unified market, low import pressure, and a "generally good" forecast for non-residential building in the United States.
JPMorgan analyst Michael Glick upgraded Commercial Metals' rating from Hold to Buy and set a $42 price target. Glick told investors in a research note that the company's lengthy product business gives leverage to building and infrastructure investment. As a result, according to the analyst, Commercial Metals is a "great vehicle to play infrastructure." He feels an infrastructure bill may be a "major plus" for the corporation in the long run. Recently Wolfe Research analyst Tinma Tanners commenced coverage of Commercial Metals with a Buy rating and set a price target of $41. Tinma holds a market-weight view on North American steel equities.
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