Commercial Metals Co (CMC)

Shares of Commercial Metals Company (CMC) dropped by 9.62%% from $48.34 to $43.69 in the trading on Thursday, October 12, 2023. The reason why CMC stock down include:

• Disappointing Quarterly Results: Commercial Metals reported its fiscal fourth-quarter results, which fell short of expectations. Despite healthy demand for finished steel products, fewer new contracts negatively impacted volumes and backlog. The company's adjusted earnings of $1.69 per share for the quarter missed the consensus estimate of $1.81 per share. However, its revenue of $2.21 billion exceeded analysts' expectations of $2.18 billion.
• Full-Year Earnings Decline: For the full fiscal year, Commercial Metals reported earnings of $7.25 per share on net sales of $8.8 billion, compared to $9.95 per share on sales of $8.9 billion in the previous year. The company also reported a slight decrease in core earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to the previous fiscal year.
• Market Challenges in Europe: CEO Peter Matt noted that while demand was solid in North America, the company faced a challenging market environment in Europe, characterized by weaker demand and compressed margins that significantly impacted results.
• Guidance and Market Conditions: Commercial Metals warned that its first-quarter performance is expected to be strong by historical standards but may decline compared to the previous quarter. This decline is attributed to seasonally lower shipments, margin compression in North America, and ongoing challenging market conditions in Europe.