Commercial Metals (NYSE:CMC) Issues Quarterly Earnings Results, Misses Expectations By $0.17 EPS

Commercial Metals (NYSE:CMC) released its earnings results on Thursday. The basic materials company reported $1.16 earnings per share for the quarter, missing analysts’ consensus estimates of $1.33 by ($0.17), FiscalAI reports. The firm had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.10 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The business’s revenue for the quarter was up 21.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.26 EPS.

Commercial Metals Stock Down 0.6%

NYSE:CMC traded down $0.37 during trading hours on Thursday, reaching $62.04. The company had a trading volume of 98,301 shares, compared to its average volume of 1,284,959. The company has a quick ratio of 3.70, a current ratio of 4.47 and a debt-to-equity ratio of 0.77. The firm has a market cap of $6.88 billion, a price-to-earnings ratio of 15.99, a P/E/G ratio of 0.35 and a beta of 1.47. The business’s 50-day simple moving average is $73.25 and its two-hundred day simple moving average is $66.56. Commercial Metals has a twelve month low of $37.92 and a twelve month high of $84.87.

Commercial Metals Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Monday, April 6th will be paid a dividend of $0.20 per share. This is a boost from Commercial Metals’s previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Monday, April 6th. Commercial Metals’s payout ratio is currently 18.56%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on CMC shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Commercial Metals in a research report on Wednesday, January 21st. KeyCorp began coverage on shares of Commercial Metals in a research report on Wednesday. They set a “sector weight” rating on the stock. Citigroup increased their price target on Commercial Metals from $65.00 to $85.00 and gave the stock a “buy” rating in a report on Monday, January 12th. Jefferies Financial Group set a $85.00 price objective on Commercial Metals and gave the stock a “buy” rating in a research report on Thursday, January 8th. Finally, Morgan Stanley boosted their price objective on Commercial Metals from $68.00 to $85.00 and gave the company an “overweight” rating in a research note on Friday, January 9th. Eight analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $72.80.

Commercial Metals News Roundup

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Very strong operating performance — consolidated core EBITDA grew ~114% year‑over‑year and core EBITDA margin expanded to 14.0% (up ~610 bps), driven by momentum in TAG and the newly acquired precast business. This materially improves cash generation and margin profile. Read More.
• Positive Sentiment: Precast acquisition contributing — the Construction Solutions’ precast platform generated ~$33.6M of adjusted EBITDA (or $40.3M excluding a $6.7M purchase accounting charge); management cites progressing integrations and expected synergies that support 2026 outlook. Read More.
• Positive Sentiment: Dividend increase signals confidence — board raised the quarterly dividend 11% to $0.20/share (ex‑dividend Apr 6), a supportive sign for income-focused investors and management’s view of cash flow stability. Read More.
• Neutral Sentiment: Analyst / media activity — KeyCorp initiated coverage with a “sector weight” (neutral) and CMC appeared on morning previews of earnings-driven stocks; these could influence short‑term flow but add no clear directional bias. Read More. • Read More.
• Neutral Sentiment: Full materials posted — management released the quarter press release and slide deck for investors to review details and listen to the call for guidance/forward commentary. Read More. • Read More.
• Negative Sentiment: Reported EPS missed Street estimates — GAAP/adjusted EPS of $1.16 missed the consensus ~$1.33 (net earnings were $0.83), creating earnings‑surprise risk despite the revenue beat and strong adjusted metrics; this is the likely proximate cause of the share weakness. Read More.
• Negative Sentiment: Technical / valuation note — the stock is trading below its 50‑day moving average (50‑day: $73.25 vs open $62.49), which could amplify near‑term selling if investors focus on momentum/technical signals. (Background: P/E ~16.1.)

Insider Activity

In other news, insider Jennifer J. Durbin sold 25,050 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $79.97, for a total transaction of $2,003,248.50. Following the transaction, the insider owned 52,880 shares in the company, valued at approximately $4,228,813.60. This represents a 32.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Dennis V. Arriola acquired 2,000 shares of the business’s stock in a transaction dated Tuesday, January 20th. The shares were bought at an average cost of $74.69 per share, for a total transaction of $149,380.00. Following the transaction, the director directly owned 9,238 shares in the company, valued at approximately $689,986.22. This represents a 27.63% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.62% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Commercial Metals

A number of hedge funds have recently added to or reduced their stakes in CMC. Lazard Asset Management LLC grew its holdings in shares of Commercial Metals by 0.6% during the fourth quarter. Lazard Asset Management LLC now owns 23,199 shares of the basic materials company’s stock valued at $1,606,000 after buying an additional 133 shares during the last quarter. Corient Private Wealth LLC raised its holdings in shares of Commercial Metals by 0.7% in the 4th quarter. Corient Private Wealth LLC now owns 23,554 shares of the basic materials company’s stock worth $1,630,000 after acquiring an additional 155 shares during the last quarter. Quadrant Capital Group LLC lifted its position in Commercial Metals by 2.9% in the 3rd quarter. Quadrant Capital Group LLC now owns 6,626 shares of the basic materials company’s stock valued at $380,000 after acquiring an additional 188 shares in the last quarter. Captrust Financial Advisors lifted its position in Commercial Metals by 4.4% in the 2nd quarter. Captrust Financial Advisors now owns 4,813 shares of the basic materials company’s stock valued at $235,000 after acquiring an additional 202 shares in the last quarter. Finally, Kestra Advisory Services LLC boosted its stake in Commercial Metals by 4.7% during the 4th quarter. Kestra Advisory Services LLC now owns 5,989 shares of the basic materials company’s stock valued at $415,000 after purchasing an additional 270 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company’s stock.

Commercial Metals Company Profile

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.