NYSE$CMC

Commercial Metals Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Commercial Metals Company reported solid results for Q1 2021, driven by strong operational execution and strategic growth initiatives amid the COVID-19 pandemic.

Commercial Metals Company (CMC) announced first quarter fiscal 2021 results with earnings from continuing operations of $63.9 million, or $0.53 per diluted share, on net sales of $1.4 billion. Adjusted earnings were $69.8 million, or $0.58 per diluted share. The company achieved its lowest mill conversion cost per ton in the last two years and saw increased shipment volumes of finished steel products in North America and Europe.

  • Earnings from Continuing Operations were $63.9 million, or $0.53 per share.
  • Adjusted Earnings from Continuing Operations reached $69.8 million, or $0.58 per share.
  • Core EBITDA was $156.6 million, with the lowest mill conversion cost per ton in two years.
  • Shipment volumes of finished steel products in North America and Europe increased 4% year-over-year.

Headline financials

Total Revenue

$1.39B

Previous: $1.39B+0.5%
EPS (adj)

$0.58

Previous: $0.73-20.5%
Capital Expenditures

-$37.2M

Previous: -$45.6M+18.3%
Free Cash Flow

$26.9M

No prior period
Net Income

$64.1M

Previous: $83.3M-23.1%
Operating Income

-$1.3B

Previous: $82.8M-1669.5%
Gross Profit

$217M

Previous: $238M-8.9%
Cash & Equivalents

$465M

No prior period
Total Assets

$4.02B

No prior period
Stock-Based Comp

$9.62M

Previous: $9.06M+6.1%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$1.39B

Q1 2021+0.5%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Commercial Metals · $1.39B total across 2 segments · Q1 2021

  • North America Steel Group
    $1.2B
  • Europe Steel Group
    $195M

Forward guidance

The company expects finished steel volumes in North America and Europe to follow typical seasonal trends in the second quarter. Shipments should be supported by the construction backlog in North America, and the company is encouraged by trends in residential construction and industrial activity. Margin headwinds are anticipated to persist in North America due to increases in domestic scrap costs, with the company adjusting price levels on rebar and merchant mill products.

Tailwinds

  • Shipments of steel and downstream products should be supported by construction backlog in North America.
  • Encouraged by recent trends in residential construction in North America and Europe.
  • Anticipates continuing solid demand for merchant products.
  • Recent trends in industrial activity in North America and Europe are positive.
  • Company acted swiftly to adjust price levels on rebar and merchant mill products.

Headwinds

  • Finished steel volumes for North America and Europe operations to follow typical seasonal trends in the second quarter, which is historically the slowest quarter for both segments
  • Margin headwinds will persist in North America during the second quarter in light of recent significant increases in domestic scrap costs.
  • Price increases have a timing lag relative to the changes in scrap cost levels.
  • Backlog contraction in select geographies.
  • Weather related disruptions in the Gulf Coast.

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 2021

Historical avgQ1 2021

-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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