NYSE$CMC

Commercial Metals Co · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Commercial Metals Company reported its best financial performance due to strong demand in Americas Mills and Fabrication segments.

Commercial Metals Company reported a strong first quarter with net sales increasing by 8% year-over-year to $1.4 billion. GAAP earnings per diluted share from continuing operations increased to $0.69, and earnings from continuing operations increased 326% year-over-year to $82.8 million. Core EBITDA and adjusted earnings also showed significant increases.

  • Net sales increased 8% year-over-year to $1.4 billion.
  • GAAP earnings per diluted share from continuing operations increased to $0.69, compared with $0.16 in the prior year.
  • Earnings from continuing operations increased 326% year-over-year to $82.8 million.
  • Core EBITDA of $174.4 million and adjusted earnings from continuing operations of $0.73 per share increased year-over-year by 78% and 109%, respectively.

Headline financials

Total Revenue

$1.39B

Previous: $1.28B+8.4%
EPS (adj)

$0.73

Previous: $0.35+108.6%
Capital Expenditures

-$45.6M

Previous: -$37.9M-20.2%
Net Income

$83.3M

Previous: $19.7M+322.2%
Operating Income

$82.8M

Previous: -$1.28B+106.5%
Gross Profit

$238M

Previous: $159M+49.9%
Stock-Based Comp

$9.06M

No prior period

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$1.39B

Q1 2020+8.4%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.48B total across 4 segments · Q3 2026

  • North America Steel Group
    $1.79B
  • Construction Solutions Group
    $395M
  • Europe Steel Group
    $291M
  • Corporate and Other
    $8.06M

Forward guidance

The company expects construction and infrastructure demand to remain resilient. Metal margins are anticipated to decline from first quarter levels but remain above the historical cycle average. Fabrication is expected to remain profitable, while Recycling should see some benefit from the recent rebound in ferrous scrap prices. Challenges are expected to remain for the Polish operations.

Tailwinds

  • Construction and infrastructure demand is expected to remain resilient.
  • Customer sentiment and fabrication backlog point to a strong outlook.
  • Progress in optimizing the expanded domestic mill network is expected to yield benefits.
  • Fabrication is anticipated to remain profitable.
  • Recycling should see some benefit from the recent rebound in ferrous scrap prices.

Headwinds

  • Second quarter will be impacted by typical seasonality.
  • Metal margins will experience a decline from first quarter levels.
  • Challenges are expected to remain for Polish operations.
  • Imports to the European Union will affect Polish operations.
  • Winter weather conditions affecting construction activity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.9%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+4.6%

Avg return

30 days after

44%

31 / 70 earnings

Positive

+14.1%

Q2 2020

Best reaction

-14.4%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-0.6%-0.3%
Q1 2026-3.7%+1.4%+13.3%
Q4 2025-7.3%+4.0%-1.2%
Q3 2025-1.8%+1.6%+10.2%
Q2 2025+1.1%+3.6%-9.7%
Q1 2025+0.0%-4.1%-0.4%
Q4 2024+4.5%-0.4%+10.6%
Q3 2024+7.3%+5.8%+13.5%
Q2 2024+3.3%+2.3%-1.4%
Q1 2024+2.3%+3.9%+10.1%
Q4 2023-10.7%-11.7%-6.5%
Q3 2023+8.1%+7.3%+15.4%
Q2 2023+4.5%+4.5%+6.6%
Q1 2023+5.3%+10.8%+11.1%
Q4 2022+4.0%+9.0%+16.3%
Q3 2022-2.2%-1.9%-7.7%
Q2 2022-1.4%-0.3%+8.1%
Q1 2022+1.0%+6.5%+1.2%
Q4 2021-2.4%-2.6%+5.4%
Q3 2021-4.7%-2.4%-4.0%
Q2 2021+1.5%-4.2%+3.5%
Q1 2021+0.6%-5.6%-2.3%
Q4 2020-5.7%-9.1%-9.0%
Q3 2020+4.5%+5.8%+4.8%
Q2 2020+14.1%+23.8%+39.5%
Q1 2020+2.1%+1.9%-2.3%
Q4 2019+0.5%+2.2%+8.7%
Q3 2019+7.6%+5.5%+14.9%
Q2 2019+3.7%+4.3%+9.5%
Q1 2019-6.9%-7.2%+1.7%
Q4 2018+2.7%+4.8%+10.4%
Q3 2018-1.3%-6.6%-7.9%
Q2 2018-14.4%-15.9%-9.4%
Q1 2018+7.5%+11.0%+2.9%
Q4 2017-9.1%-10.0%-12.8%
Q3 2017+4.0%+0.0%+8.9%
Q2 2017-1.1%+3.5%+0.9%
Q1 2017-5.8%-9.8%-7.1%
Q4 2016-5.9%-5.2%+35.4%
Q3 2016-5.1%-3.9%-2.0%
Q2 2016+3.2%
Q1 2016+4.7%
Q4 2015-10.1%
Q3 2015+4.0%
Q2 2015+2.6%
Q1 2015-7.8%
Q4 2014-2.2%
Q3 2014-4.3%
Q2 2014-2.2%
Q1 2014+2.6%
Q4 2013+4.7%
Q3 2013+6.3%
Q2 2013-5.8%
Q1 2013-1.7%
Q4 2012-2.3%
Q3 2012+3.3%
Q2 2012+1.2%
Q1 2012+1.5%
Q4 2011-8.8%
Q4 2009-8.8%
Q2 2009-8.8%
Q3 2009-8.8%
Q1 2009-8.8%
Q3 2010-3.6%
Q3 2011-3.6%
Q2 2011-5.0%
Q1 2011-0.6%
Q1 2010-0.6%
Q2 2010-0.6%
Q4 2010-0.6%

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