Commercial Metals Company Q3 Adjusted Earnings Top Estimations
Commercial Metals Company (NYSE: CMC) announced 10.5 percent drop in earnings from continuing operations for the third quarter hurt by 4.2 percent drop in the top line. However, both came in either above or in line with the Street analysts' expectations.
Commercial Metals reported earnings from continuing operations of $35.1 million, down 10.5 percent from $39.2 million while EPS from continuing operations fell 11.8 percent to $0.30 from $0.34 in the year-ago quarter. This is better than the Street predictions of $0.25 a share.
On a GAAP basis, net earnings fell 32.7 percent to $19.33 million from $28.7 million while EPS fell 32 percent to $0.17 from $0.25 in the comparable period.
The company's top line slipped 4.2 percent to $1.15 billion from $1.2 billion in the previous year quarter and came in line with the analysts' estimations.
Its Chairman, President and CEO, Joe Alvarado, commented, "We are pleased with our results for our fiscal third quarter of 2016. We experienced strong demand as four of our five segments reported increased shipments. Our Americas Recycling and Americas Fabrication segments continued to realize improvements in average metal margins, compared to the third quarter of fiscal 2015."
Moving ahead, Commercial Metals expect the fourth quarter results to remain strong in line with the third quarter financial numbers. The CEO said that its key market indicators continued to suggest a robust demand in the construction markets in United States. He also said that the company would start realizing productivity, as well as, cost enhancements in the fourth quarter.
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