Commercial Metals (NYSE: CMC) reported Q4 EPS of $0.56, $0.03 worse than the analyst estimate of $0.59. Revenue for the quarter came in at $1.22 billion versus the consensus estimate of $1.37 billion.

• Fourth quarter GAAP Earnings from Continuing Operations increased 5.6% sequentially, Adjusted Earnings from Continuing Operations increased 35%
• Fourth quarter Core EBITDA rose 14% sequentially. Fiscal year 2020 Core EBITDA increased 30% year-over-year
• Fourth quarter North America segment Adjusted EBITDA increased 9% sequentially, driven by higher shipments of finished product and strong cost management throughout the vertically integrated value chain
• Generated full year Cash from Operations of $791.2 million

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, commented, "Fiscal 2020 was an exceptional year for CMC, and our strong results – including enhanced earnings, increased cash flow, additional operational flexibility, and a more robust balance sheet – demonstrate the value of CMC's purposeful strategic transformation completed over the last several years and our position as a leader in concrete reinforcement."

"The past year was also one of unprecedented challenges that altered the work and home life of each of our employees. I could not be prouder of the way the CMC team members responded, delivering a banner year for our Company despite the difficulties presented by the COVID-19 pandemic. Looking ahead, we continue to strategically build for the future. We expect our ongoing network optimization efforts will yield additional margin and working capital benefits, and our third rolling line in Poland to begin commissioning toward the end of this fiscal year. In addition, we recently announced the construction of a third micro mill, which will be the world's first merchant product-capable micro mill upon its completion in fiscal 2023," Smith added.

Outlook

"We expect finished steel volumes for our North America and Europe operations to follow typical seasonal trends in the first fiscal quarter, with some negative impact in North America due to storms in the Texas and Gulf Coast markets," said Ms. Smith. "Shipments of steel and downstream products in the near-term should be supported by our solid construction backlog. We anticipate margin headwinds in the first quarter within North America due to the recent rise in scrap costs mitigated, in part, by steel price increases that became effective during the quarter. The market for long products in Europe is expected to remain challenged due to elevated import levels. However, demand appears solid, driven by construction sector resilience, and rebounding Central European industrial production."

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