NYSE$CMC

Commercial Metals Co · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Commercial Metals Company's financial performance surged, driven by robust market conditions and strategic acquisitions.

Commercial Metals Company reported a remarkable third quarter for fiscal year 2022, marked by strong operational execution and favorable market dynamics across key regions. Net earnings reached $312.4 million, a 140% increase compared to the prior year, with adjusted earnings at $320.2 million. The acquisition of Tensar Corporation added a new growth platform, contributing to the company's solid financial achievements.

  • Net earnings increased by 140% year-over-year, reaching $312.4 million, or $2.54 per diluted share.
  • Core EBITDA rose by 110% year-on-year, totaling $483.9 million.
  • Margins over scrap in North America and Europe reflected strong market conditions and favorable customer sentiment.
  • Tensar acquisition was completed, creating a new strategic growth platform.

Headline financials

Total Revenue

$2.52B

Previous: $1.85B+36.4%
EPS (adj)

$2.61

Previous: $1.04+151.0%
Capital Expenditures

-$294M

Previous: $39.7M-841.3%
Free Cash Flow

$18.1M

Previous: $53.3M-66.1%
Net Income

$312M

Previous: $130M+139.6%
Operating Income

-$2.1B

Previous: $169M-1348.6%
Gross Profit

$559M

Previous: $311M+79.7%
Cash & Equivalents

$410M

Previous: $443M-7.4%
Total Assets

$6.1B

Previous: $4.39B+39.0%
Stock-Based Comp

$10.4M

Previous: $12M-13.4%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$2.52B

Q3 2022+36.4%vs Q3 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.52B total across 3 segments · Q3 2022

  • North America Steel Group
    $2.03B+30.5%
  • Europe Steel Group
    $485M+70.6%
  • Corporate and Other
    -$1.99M-169.3%

Forward guidance

The company anticipates strong financial performance to continue in the fourth quarter, driven by robust demand and growing downstream backlog. Margins over scrap in North America and Europe should remain at levels near those of the third quarter due to favorable market conditions.

Tailwinds

  • Robust demand for major product lines is expected to persist.
  • Growing downstream backlog.
  • Solid levels of new work entering the project pipeline.
  • Margins over scrap in North America and Europe should remain strong.
  • Favorable market conditions across geographies.

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 2022

Historical avgQ3 2022

-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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