CMC - Commercial Metals pushes past $50 for first time since March after strong Q3

2023-06-22 12:35:03 ET

Commercial Metals ( NYSE: CMC ) +7.1% in Thursday's trading, topping $50 for the first time in three months, after beating expectations on FQ3 adjusted earnings and revenues, saying it is enjoying a boost from robust North American construction activity.

Commercial Metals ( CMC ) posted a profit of $234M, or $1.98/share, in the quarter ended May 31, down from $312.4M, or $2.54/share, in the year-earlier quarter, while sales slipped to $2.34B from $2.52B a year ago but edging past expectations.

Q3 shipment volumes of finished steel were relatively unchanged from a year ago while the average selling price for steel products fell.

Commercial Metals ( CMC ) said it anticipates increased activity in rebar-intensive construction sectors, which will continue to drive demand in the quarters and years ahead.

Specific guidance was not provided but results are expected to remain strong in Q4 (August), with North America finished steel product shipments consistent with Q3.

The company has made progress on the commissioning of operations at the Arizona 2 project, and Chairman and CEO Barbara Smith said "operations are starting at an ideal time to capitalize on growing construction activity related to the Infrastructure Investment and Jobs Act, re-shoring, and the Inflation Reduction Act."

More on Commercial Metals:

• Financial and valuation comparison to sector peers
• Analysis: Commercial Metals Company Is A Stable Steel Play
• Stock price return: Down less than 1% YTD, up 30% in the past 12 months

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