Post-Earnings Insights - Commercial Metals

LONDON, January 15, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings insight on Commercial Metals Co. (NYSE: CMC). On January 06, 2015, the company reported its financial results for Q1 FY15 (period ended November 30, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Commercial%20Metals&d=15-Jan-2015&s=CMC to read our free earnings review on Commercial Metals Co. (Commercial Metals). During Q1 FY15, Commercial Metals' earnings from continuing operations were $38.33 million, or $0.32 per diluted share, compared with earnings from continuing operations of $33.70 million, or $0.29 per diluted share, in Q1 FY14. Chairman, President, and CEO, Joseph Alvarado said that the company's results for Q1 FY15 were strong with adjusted operating profit from continuing operations improving by 7% over both the sequential quarter and Q1 FY14. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Commercial%20Metals&d=15-Jan-2015&s=CMC

Earnings Overview 

During Q1 FY15, Commercial Metals' net sales improved to $1.68 billion from $1.62 billion in Q1 FY14. The company's net sales during the reported quarter fell short of Bloomberg analysts' forecast of $1.78 billion. Net earnings attributable to Commercial Metals in Q1 FY15 stood at $36.25 million, or $0.30 per diluted share, compared to net earnings attributable to Commercial Metals of $45.92 million, or $0.39 per diluted share, in Q1 F14. Analysts from Bloomberg had expected the company to report net earnings attributable to Commercial Metals of $31.17 million, or $0.26 per diluted share, in Q1 FY15. Additionally, results for Q1 FY14 included an after-tax gain of $15.5 million, or $0.13 per diluted share associated with the sale of the company's wholly owned copper tube manufacturing operation, Howell Metal Co. The free research on CMC can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Commercial%20Metals&d=15-Jan-2015&s=CMC

In Q1 FY15, Commercial Metals' adjusted operating profit from continuing operations stood at $73.29 million, compared with adjusted operating profit from continuing operations of $68.73 million in Q1 FY14 and $68.78 million in Q4 FY14. The company reported adjusted EBITDA from continuing operations of $106.42 million in Q1 FY15, compared with adjusted EBITDA from continuing operations of $102.26 million in Q1 FY14.

For Q1 FY15, the company's Americas Recycling segment recorded adjusted operating loss of $1.14 million, compared to adjusted operating profit of $0.84 million in Q1 FY14. Further, Americas Mills segment recorded adjusted operating profit of $75.38 million in Q1 FY15, compared to adjusted operating profit of $65.81 million in the comparable previous year quarter. For the reported quarter, Americas Fabrication segment recorded adjusted operating loss of $3.01 million, compared to adjusted operating profit of $2.22 million in Q1 FY14. Additionally, International Marketing and Distribution segment recorded adjusted operating profit of $18.25 million in Q1 FY15, compared to adjusted operating profit of $2.04 million in Q1 FY14. Sign up and read the free analyst's notes on CMC at:

http://get.Investor-Edge.com/pdf/?c=Commercial%20Metals&d=15-Jan-2015&s=CMC

Mr. Alvarado stated that the company had achieved its Q1 FY15 results despite declining scrap prices, a three week planned outage at its minimill in Poland and fewer shipping days during the reported quarter as compared to Q4 FY14.

During the Q1 FY15, Commercial Metals decided to exit and sell its steel distribution business in Australia. As on November 30, 2014, the company reported strong cash and cash equivalents balance of $326.08 million with approximately $1.0 billion in total liquidity.

As part of the share repurchase program, approved in late October 2014, Commercial Metals purchased 560,493 shares of common stock for $9.3 million during Q1 FY15. On January 05, 2015, the company's board of directors declared a quarterly dividend of $0.12 per share for shareholders of record on January 20, 2015, payable on February 03, 2015. Visit Investor-Edge and access the latest research on CMC at:

http://get.Investor-Edge.com/pdf/?c=Commercial%20Metals&d=15-Jan-2015&s=CMC

Stock Performance 

On the day of earnings release, January 06, 2015, Commercial Metals' stock plummeted 6.73% to end the session at $14.42. Since then, the company's stock has witnessed a negative trend. On Wednesday, January 14, 2015, the company's shares finished at $13.52, 2.59% below its previous day's closing price of $13.88, and hitting 52-week low of $13.19. A total of 1.18 million shares were traded, which was at par with its three months average volume. Over the previous three trading sessions and the last one month, the company's shares have declined 4.86% and 13.78%, respectively. Further, the stock has lost 7.27% in past three months. Shares in Commercial Metals closed below their 50-day and 200-day moving averages of $16.10 and $17.33, respectively. Furthermore, the stock traded at a PE ratio of 17.06 and has a Relative Strength Index (RSI) of 27.18.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 3 insider transactions made by 3 individuals. Between December 31, 2014 and January 08, 2015, a total of 9,709 shares of the company were bought at an average price of $15.74 per share, for a total value of $152,839. On December 31, 2014, Sarah E. Raiss, Director at Commercial Metals, purchased 6,709 shares at a price of $16.29. Additionally, on January 08, 2015, Joseph Alvarado bought 2,000 shares at a price of $14.55 per share, and Barbara R. Smith, Senior Vice President and CFO at Commercial Metals, purchased 1,000 shares at a price of $14.45 per share. Complimentary in-depth research on CMC is available at:

http://get.Investor-Edge.com/pdf/?c=Commercial%20Metals&d=15-Jan-2015&s=CMC

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