Uncovering Potential: Commercial Metals's Earnings Preview

Commercial Metals (NYSE:CMC) is gearing up to announce its quarterly earnings on Thursday, 2024-10-17. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Commercial Metals will report an earnings per share (EPS) of $0.89.

The market awaits Commercial Metals's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

In the previous earnings release, the company missed EPS by $0.00, leading to a 3.32% increase in the share price the following trading session.

Commercial Metals Share Price Analysis

Shares of Commercial Metals were trading at $53.08 as of October 15. Over the last 52-week period, shares are up 30.89%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Commercial Metals

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Commercial Metals.

The consensus rating for Commercial Metals is Buy, based on 1 analyst ratings. With an average one-year price target of $65.0, there's a potential 22.46% upside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of and Cleveland-Cliffs, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Cleveland-Cliffs, with an average 1-year price target of $14.5, suggesting a potential 72.68% downside.

Analysis Summary for Peers

The peer analysis summary presents essential metrics for and Cleveland-Cliffs, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Commercial Metals	Buy	-11.36%	$340.40M	2.82%
Cleveland-Cliffs	Neutral	-14.91%	$162M	0.03%

Key Takeaway:

Commercial Metals is positioned in the middle compared to its peers in terms of consensus rating. It shows a higher revenue growth rate than its peers. However, its gross profit is lower than the average of its peers. Additionally, its return on equity is higher than the average of its peers.

Get to Know Commercial Metals Better

Commercial Metals Co operates steel mills, steel fabrication plants, and metal recycling facilities in the United States and manufactures rebar and structural steel, which are key product categories for the nonresidential construction sector. The Company has two reportable segments: North America and Europe.

Key Indicators: Commercial Metals's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Negative Revenue Trend: Examining Commercial Metals's financials over 3 months reveals challenges. As of 31 May, 2024, the company experienced a decline of approximately -11.36% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Commercial Metals's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 5.75%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.82%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Commercial Metals's ROA excels beyond industry benchmarks, reaching 1.79%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.

To track all earnings releases for Commercial Metals visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.