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Ternium (TX) to Report Q3 Earnings: What's in the Cards?

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Ternium S.A. TX is slated to release third-quarter 2021 results after the closing bell on Nov 2. Benefits of higher steel prices and healthy shipments are likely to reflect on its third-quarter results.

The Luxembourg-based company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 77.1%. It posted an earnings surprise of roughly 36.4% in the last reported quarter.

The stock has rallied 132.9% in the past year compared with the industry’s 88.3% rise.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Let’s see how things are shaping up for this announcement.

What do the Estimates Indicate?

The Zacks Consensus Estimate for Ternium’s third-quarter consolidated sales is currently pegged at $4,301 million, which calls for an increase of 101.1% from the year-ago quarter’s tally.

Some Factors at Play

The company is likely to have benefited from higher prices and healthy shipment volumes in the third quarter. Ternium, in its second-quarter call, said that it expects EBITDA, margins and volumes to increase in the third quarter on a sequential comparison basis on higher realized steel prices.

Shipments in Mexico, in the third quarter, are likely to have been driven by strong demand from industrial customers. Moreover, healthy demand for construction materials and higher activities in automotive are expected to have supported shipments in Argentina.

Moreover, Ternium benefited from higher steel prices in its major markets in the second quarter on the back of strong demand. The pricing strength, backed by heathy steel prices in the North American market, is expected to have continued in the September quarter and supported the company’s top line. However, higher cost per ton is likely to have affected its performance. Ternium is seeing higher costs for many of its raw materials such as iron ore and scrap.

Ternium S.A. Price and EPS Surprise

Ternium S.A. Price and EPS Surprise
Ternium S.A. Price and EPS Surprise

Ternium S.A. price-eps-surprise | Ternium S.A. Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for Ternium this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Ternium is 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at $5.31. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ternium currently carries a Zacks Rank #1.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

The Chemours Company CC, scheduled to release earnings on Nov 4, has an Earnings ESP of +1.26% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle Corporation ALB, scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.

Olympic Steel, Inc. ZEUS, scheduled to release earnings on Nov 4, has an Earnings ESP of +7.08% and carries a Zacks Rank #3.

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Albemarle Corporation (ALB) : Free Stock Analysis Report

Ternium S.A. (TX) : Free Stock Analysis Report

Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report

The Chemours Company (CC) : Free Stock Analysis Report

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