NYSE$CMC

Commercial Metals Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Commercial Metals Company reported strong second quarter results driven by robust demand and enhanced earnings capability.

Commercial Metals Company reported a strong second quarter with earnings from continuing operations increasing 326% year-over-year to $63.6 million, or $0.53 per diluted share. Net sales were $1.3 billion, compared to $1.4 billion in the prior year period. The company achieved the second highest adjusted EBITDA margin in its history, supported by robust demand from the U.S. and Polish construction markets.

  • Gross margin increased 45% year-over-year to $217.9 million.
  • Americas Mills segment achieved record second quarter shipment levels; International Mill shipments highest for a second quarter in 12 years.
  • GAAP earnings per diluted share from continuing operations increased to $0.53, compared with $0.13 in the prior year.
  • Core EBITDA increased 60% year-over-year to $145.3 million.

Headline financials

Total Revenue

$1.34B

Previous: $1.4B-4.4%
EPS (adj)

$0.53

Previous: $0.29+82.8%
Capital Expenditures

-$96.6M

Previous: -$67.5M-43.1%
Free Cash Flow

-$32.8M

Previous: -$53.6M+38.9%
Net Income

$63.8M

Previous: $13.9M+360.6%
Operating Income

-$1.28B

Previous: -$1.4B+8.1%
Gross Profit

$218M

Previous: $150M+45.0%
Cash & Equivalents

$232M

Previous: $68.2M+241.0%
Total Assets

$3.91B

Previous: $3.73B+4.8%
Stock-Based Comp

$6.74M

Previous: $7.54M-10.5%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$1.34B

Q2 2020-4.4%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Commercial Metals · $912M total across 2 segments · Q2 2020

  • North America Steel Group
    $732M
  • Europe Steel Group
    $180M

Forward guidance

Given economic uncertainties caused by the COVID-19 outbreak, as well as potential courses of action that local, state, and federal government bodies may take, the company is unable to provide forward guidance at this time. The company remains focused on factors it can control, and are positioning the company for long-term value generation.

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 Q2 2020

Historical avgQ2 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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