NYSE$CMC

Commercial Metals Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Commercial Metals Company reported strong financial results for Q2 2021, driven by record Core EBITDA and effective cost management.

Commercial Metals Company announced second quarter fiscal 2021 results with earnings from continuing operations at $66.2 million, or $0.54 per diluted share, on net sales of $1.5 billion. Adjusted earnings were $79.8 million, or $0.66 per diluted share. The company achieved a record second quarter Core EBITDA of $171.1 million, up 18% year-over-year.

  • Second quarter Earnings from Continuing Operations were $66.2 million, or $0.54 per diluted share.
  • Adjusted Earnings from Continuing Operations were $79.8 million, or $0.66 per diluted share.
  • Core EBITDA of $171.1 million, a second quarter record, up 18% year-over-year and 9% sequentially.
  • The company achieved stable steel products metal margins despite a rapidly rising scrap cost environment.

Headline financials

Total Revenue

$1.46B

Previous: $1.34B+9.0%
EPS (adj)

$0.66

Previous: $0.53+24.5%
Capital Expenditures

$50.5M

Previous: -$96.6M+152.3%
Free Cash Flow

-$37.2M

Previous: -$32.8M-13.4%
Net Income

$66.4M

Previous: $63.8M+4.0%
Operating Income

$87.2M

Previous: -$1.28B+106.8%
Gross Profit

$234M

Previous: $218M+7.4%
Cash & Equivalents

$367M

Previous: $232M+58.0%
Total Assets

$4.06B

Previous: $3.91B+4.0%
Stock-Based Comp

$16.3M

Previous: $6.74M+141.0%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$1.46B

Q2 2021+9%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Commercial Metals · $1.46B total across 2 segments · Q2 2021

  • North America Steel Group
    $1.26B+71.8%
  • Europe Steel Group
    $202M+12.2%

Forward guidance

The company expects finished steel volumes in both North America and Europe to follow typical seasonal trends during the third quarter. Margins over scrap on steel products in both North America and Europe are expected to increase sequentially following the realization of price adjustments made throughout the second quarter.

Tailwinds

  • Shipments of steel and downstream products in North America should be supported by our construction backlog.
  • Steel products also benefiting from elevated residential construction spending.
  • Steel products benefiting from continued manufacturing recovery.
  • Steel products benefiting from anticipated strong highway infrastructure activity.
  • Volumes in Europe are anticipated to remain healthy, driven by growing demand from construction and industrial end markets.

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 2021

Historical avgQ2 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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