Commercial Metals Earnings Preview
January 06, 2012 4:59 AM
Commercial Metals (NYSE: CMC), the company financier Carl Icahn has been trying to acquire for $1.7 billion, reports earnings before the bell today and analysts are expecting a profit of 19 cents a share on revenue of $2.05 billion. EPS estimates range from 17 cents to 20 cents.
While the stock has surged 44.5% in the past quarter, only three analysts rate Commercial Metals a Buy and the average price target is $15, implying limited upside from current levels.
On Tuesday, Commercial Metals management sent a letter to investors asking them to oppose Icahn's takeover bid, which values the company at $15, a price that even Icahn himself has implied the company isn't worth.
Icahn, who has been extremely critical of Commercial Metals Management, plans to combine its core North American operations with his current metals-recycling businesses and sell off other parts of the company, according to the Associated Press.
Early next month, shareholders will vote for three incumbent directors or three candidates nominated by Icahn. Icahn has extended his tender offer for Commercial Metals.
