CMC: Commercial Metals Company Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

In This Article: It's been a good week for Commercial Metals Company ( NYSE:CMC ) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to US$48.38. It was not a great result overall. While revenues of US$1.8b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 20% to hit US$0.22 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. NYSE:CMC Earnings and Revenue Growth March 28th 2025 Taking into account the latest results, Commercial Metals' nine analysts currently expect revenues in 2025 to be US$7.76b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 344% to US$2.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.76b and earnings per share (EPS) of US$2.75 in 2025. So the consensus seems to have become somewhat more optimistic on Commercial Metals' earnings potential following these results. View our latest analysis for Commercial Metals There's been no major changes to the consensus price target of US$57.21, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Commercial Metals at US$68.00 per share, while the most bearish prices it at US$49.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Commercial Metals shareholders. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Commercial Metals' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.5% growth on an annualised basis. This is compared to a historical growth rate of 8.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Commercial Metals. NYSE:CMC Earnings and Revenue Growth March 28th 2025 The Bottom Line The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Commercial Metals following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$57.21, with the latest estimates not enough to have an impact on their price targets. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Commercial Metals analysts - going out to 2027, and you can see them free on our platform here. Even so, be aware that Commercial Metals is showing 2 warning signs in our investment analysis , you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.