Commercial Metals Co. Earnings Preview

Investors never know what to expect for Commercial Metals (NYSE: CMC  ) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Friday. Commercial Metals recycles, manufactures, fabricates, and distributes steel and metal products through a network of locations throughout the United States and internationally.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Commercial Metals with six of nine analysts rating it hold. Analysts don't like Commercial Metals as much as competitor Schnitzer Steel Industries overall. Four out of nine analysts rate Schnitzer Steel Industries a buy compared to three of nine for Commercial Metals. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $2.05 billion in revenue this quarter. That would represent a rise of 15.2% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.19 per share. Estimates range from $0.17 to $0.20.

What our community says:
CAPS All-Stars are solidly behind the stock with 96.2% giving it an outperform rating. The community at large backs the All-Stars with 95.4% granting it a rating of outperform. Fools are keen on Commercial Metals and haven't been shy with their opinions lately, logging 135 posts in the past 30 days. Despite the majority sentiment in favor of Commercial Metals, the stock has a middling CAPS rating of three out of five stars.

Management:

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q4

Q3

Q2

Q1

Gross Margin

7.5%

10.4%

4.5%

8.4%

Operating Margin

(4.9%)

2.5%

(3.3%)

0.4%

Net Margin

(5.3%)

1.7%

(2.6%)

0%

For all our Commercial Metals Company-specific analysis, including earnings and beyond, add Commercial Metals to My Watchlist.

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Earnings estimates provided by Zacks

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