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Ternium (TX) to Report Q4 Earnings: What's in the Cards?

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Ternium S.A. TX is slated to release fourth-quarter 2021 results after the closing bell on Feb 15. Benefits of higher steel prices and healthy shipments are likely to reflect on its fourth-quarter results.

The Luxembourg-based company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 39.6%. It posted an earnings surprise of roughly 15.3% in the last reported quarter.

The stock has rallied 53.5% in the past year compared with the industry’s 32.5% rise.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Let’s see how things have shaped up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Ternium this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for Ternium is +0.61%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $4.93. 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 #3.

What Do the Estimates Indicate?

The Zacks Consensus Estimate for Ternium’s fourth-quarter consolidated sales is currently pegged at $4,655 million, which calls for an increase of 80.4% from the year-ago quarter’s reported figure.

Some Factors at Play

The company is likely to have benefited from higher prices and healthy shipment volumes in the fourth quarter. Shipments in Mexico, in the fourth quarter, are likely to have been driven by strong demand from industrial customers. Healthy demand for construction materials and higher activities in automotive are expected to have supported shipments in Argentina. However, the shipment volumes are likely to have been affected by year-end seasonality.

Ternium also benefited from strong steel prices in its major markets in the third 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 fourth quarter and supported the company’s top line. Higher realized steel prices are likely to have driven its margins.

However, higher cost per ton is likely to have affected the company’s performance in the December quarter. Ternium is seeing higher costs for many of its raw materials along with increased slab costs.

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

Stocks That Warrant a Look

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

Huntsman Corporation HUN, scheduled to release earnings on Feb 15, has an Earnings ESP of +0.09% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 4.1% upward over the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.

CF Industries Holdings, Inc. CF, slated to release earnings on Feb 15, has an Earnings ESP of +7.88% and carries a Zacks Rank #3.

The consensus estimate for CF Industries' fourth-quarter earnings has been revised 46.3% upward over the past 60 days. The Zacks Consensus Estimate for CF’s earnings for the quarter stands at $3.41.

Nutrien Ltd. NTR, scheduled to release earnings on Feb 16, has an Earnings ESP of +2.61% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for Nutrien's fourth-quarter earnings has been revised 0.9% upward over the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.30.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report

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

Huntsman Corporation (HUN) : Free Stock Analysis Report

Nutrien Ltd. (NTR) : Free Stock Analysis Report

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