On Thursday, BMO Capital maintained its Market Perform rating on Commercial Metals Company (NYSE:CMC) with a steady price target of $60.00. The firm acknowledged the company's third-quarter fiscal year 2024 (March-May) core EBITDA of $256 million, which marginally surpassed both BMO Capital's and the consensus estimates of $252 million and $249 million, respectively. The slight outperformance was attributed to stronger shipments and pricing.
Commercial Metals Company, in its financial report, indicated that it anticipates its fourth-quarter fiscal year 2024 results to align with the third-quarter figures. This forecast is slightly below the current estimates of both BMO Capital and the wider market consensus. However, BMO Capital suggests that the company's outlook might be on the conservative side.
The steel and metal manufacturer's third-quarter performance stands out, especially when compared to less favorable updates from industry peers. BMO Capital's commentary highlighted the robust nature of the results in the context of the broader industry.
Commercial Metals Company is set to discuss its quarterly outcomes and provide additional insights during a conference call scheduled for today at 11:00 a.m. ET. Interested parties are likely to tune in for further details on the company's performance and future expectations.
The maintained price target and rating reflect BMO Capital's view of the company's stock following the reported earnings and its projections for the coming quarter. Commercial Metals Company's shares are traded on the New York Stock Exchange under the ticker symbol CMC.
In other recent news, Commercial Metals Company (CMC) reported strong second quarter results for fiscal 2024. The company's robust core EBITDA and margin performance were highlighted, along with a record-low total recordable incident rate. CMC's commitment to shareholder returns was underscored by an increased quarterly dividend and an enhanced share repurchase authorization by $500 million.
The company's strategic outlook is centered on value creation and growth, with major projects such as the Arizona 2 plant and Steel West Virginia site progressing as planned. Despite uncertainties in the West Coast rebar market, CMC projects monthly EBITDA breakeven by the fourth fiscal quarter, buoyed by robust construction activity in North America.
The company reported net earnings of $85.8 million for Q2, marking improved liquidity and leverage metrics. CMC's outlook anticipates stable EBITDA margins in North America and improving conditions in Europe. These recent developments highlight CMC's financial resilience and strategic advancements amidst a dynamic market environment.
InvestingPro Insights
Commercial Metals Company (NYSE:CMC) has recently drawn attention with its third-quarter results, and investors are keenly observing its performance. According to InvestingPro data, CMC has a market capitalization of $5.87 billion and trades with a price-to-earnings (P/E) ratio of 8.69, suggesting a potentially undervalued status in the market. With a solid P/E ratio last twelve months as of Q2 2024 at 8.57, and a price to book ratio of 1.39, the company appears to be positioned favorably in terms of valuation metrics.
InvestingPro Tips shed further light on the company's financial health and investor sentiment. Significantly, management's aggressive share buybacks and a high shareholder yield indicate a proactive approach to creating value. Additionally, the company has not only maintained its dividend payments for 54 consecutive years but has also raised its dividend for the last three years, showcasing a commitment to returning value to shareholders. With a dividend yield of 1.42% and a 12.5% dividend growth rate in the last twelve months as of Q2 2024, income-focused investors might find CMC an attractive option.
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