Commercial Metals Poised For Q4 Growth Amid Favorable Market Trends, Says CEO

Shares of Commercial Metals Co. (NYSE:CMC) initially fell Monday after the company reported fiscal third-quarter results that missed Wall Street expectations, but subsequently reversed all of their premarket losses to trade higher.

Net sales rose 2.9% year over year to $2.02 billion, falling short of the $2.05 billion consensus estimate.

Core EBITDA declined to $204.1 million from $256.1 million a year earlier, with the core EBITDA margin narrowing to 10.1% from 12.3%.

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Adjusted earnings per share came in at 74 cents, missing the analysts’ average forecast of 85 cents.

The North America Steel Group demand was solid, with finished steel shipments up 1.6% year over year and 10.4% quarter over quarter on seasonal strength.

Adjusted EBITDA for the North America Steel Group fell to $186 million from $246 million on lower scrap spreads, partly offset by ...