NYSE$CMC

Commercial Metals Co · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Commercial Metals Company reported record third quarter fiscal 2021 results driven by robust demand and strong execution.

Commercial Metals Company announced record third quarter fiscal 2021 results with earnings from continuing operations of $130.4 million, or $1.07 per diluted share, on net sales of $1.8 billion. The company achieved record Core EBITDA from Continuing Operations of $230 million, up 49% year-over-year and 35% sequentially, and record North America and Europe segment Adjusted EBITDA. The company's liquidity position remained solid with cash and cash equivalents of $443.1 million.

  • Achieved record Earnings from Continuing Operations of $130 million, or $1.07 per diluted share.
  • Achieved record Core EBITDA from Continuing Operations of $230 million, up 49% year-over-year and 35% sequentially.
  • Achieved record North America and Europe segment Adjusted EBITDA.
  • Network optimization initiative continues; seventh consecutive quarter of year-over-year reduction in North America controllable costs per ton.

Headline financials

Total Revenue

$1.85B

Previous: $1.34B+37.5%
EPS (adj)

$1.04

Previous: $0.59+76.3%
Capital Expenditures

$39.7M

Previous: -$134M+129.6%
Free Cash Flow

$53.3M

Previous: -$69.4M+176.9%
Net Income

$130M

Previous: $64.7M+101.5%
Operating Income

$169M

Previous: -$1.29B+113.0%
Gross Profit

$311M

Previous: $225M+38.1%
Cash & Equivalents

$443M

Previous: $462M-4.1%
Total Assets

$4.39B

Previous: $3.95B+11.0%
Stock-Based Comp

$12M

Previous: $6.17M+94.3%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$1.85B

Q3 2021+37.5%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Commercial Metals · $1.85B total across 3 segments · Q3 2021

  • North America Steel Group
    $1.56B+110.3%
  • Europe Steel Group
    $284M+63.5%
  • Corporate and Other
    $2.87M

Forward guidance

Strong demand across multiple end-use markets should support robust shipment levels of finished steel during the fourth quarter in both North America and Europe. Margins over scrap on steel products in North America and Europe are expected to be relatively flat or up modestly from third quarter levels.

Tailwinds

  • Strong demand across multiple end-use markets should support robust shipment levels of finished steel during the fourth quarter in both North America and Europe.
  • Construction activity is strong and the industrial sectors are growing in both the U.S. and Central Europe, as both regions continue to recover from the pandemic.
  • Increased willingness of downstream customers in our North America segment to contract new work.
  • Stability of our construction backlog both point to continued demand strength.
  • Several widely monitored construction indicators that generally lead activity by nine to twelve months, which have improved significantly in 2021.

Headwinds

  • Margins over scrap on steel products in North America and Europe to be relatively flat or up modestly from third quarter levels.

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 Q3 2021

Historical avgQ3 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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