Overview

* Commercial Metals ( CMC ) misses analyst expectations for Q3 fiscal revenue , per LSEG data

* Adjusted EPS for fiscal Q3 misses consensus

* Company repurchased 1.1 mln shares valued at $50.4 mln

Outlook

* Commercial Metals ( CMC ) expects Q4 financial results to improve sequentially.

* Company anticipates higher steel product margins over scrap in Q4.

* Europe Steel Group to receive $28 mln CO2 credit in Q4.

* Emerging Businesses Group financial results expected to improve year-over-year.

Result Drivers

* STEEL PRODUCT MARGINS - North American steel product margins increased, exiting the quarter above average, per CEO Peter Matt

* EMERGING BUSINESS PROFITABILITY - Profitability improved sequentially and year-over-year, driven by demand for proprietary products

* TAG PROGRAM - Exceeding targeted EBITDA benefits, contributing to financial results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $2 bln $2.04

Revenue bln (8

Analysts

)

Q3 Miss $0.74 $0.85 (9

Adjusted Analysts

EPS )

Q3 EPS $0.73

Q3 Miss $84.40 $92 mln

Adjusted mln (3

Net Analysts

Income )

Q3 Net $83.10

Income mln

Q3 Miss $204.10 $218.50

Adjusted mln mln (8

EBITDA Analysts

)

Q3 Core 10.1%

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the iron & steel peer group is "buy"

* Wall Street's median 12-month price target for Commercial Metals Co ( CMC ) is $52.50, about 7.3% above its last closing price of $48.68

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI capabilities based on LSEG and company data. The headline and summary were reviewed by a Reuters journalist prior to publication.)