Commercial Metals (CMC) Tops Q2 EPS by 4c, Revenues Miss

Commercial Metals (NYSE: CMC) reported Q2 EPS of $0.53, $0.04 better than the analyst estimate of $0.49. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.36 billion.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, commented, "Despite winter seasonality and an unusually wet February, the second quarter was strong and demonstrates our Company's enhanced earnings capability following the transformational actions of the last several years. In the quarter, we achieved the second highest adjusted EBITDA margin in our history, behind only our first quarter 2020 performance. The great results were helped by robust demand from the U.S. and Polish construction markets, which continued to support steel shipment volumes during the quarter."

"Strong earnings and disciplined working capital management provided $107.0 million of operating cash flow during the quarter, allowing us to further de-lever our balance sheet. Our net debt-to-EBITDA ratio of 1.6x provides us great flexibility in our capital structure to pursue our growth strategies, as well as endure today's volatile environment."

Outlook

"We enter the summer construction season with a good fabrication backlog, solid bidding activity, and mill metal margins above past cyclical averages," said Ms. Smith. "However, given economic uncertainties caused by the COVID-19 outbreak, as well as potential courses of action that local, state, and federal government bodies may take, we are unable to provide forward guidance at this time. In this unpredictable environment, we remain focused on factors we can control, and are positioning our Company for long-term value generation."

For earnings history and earnings-related data on Commercial Metals (CMC) click here.

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