Commercial Metals Q3 Earnings Top Views, Shares Rise

Shares of

jumped more than 2 percent in pre-market trading after the company reported better-than-expected earnings for its fiscal third quarter. The Irving, Texas-based company posted quarterly earnings of $56.7 million, or $0.49 per share, compared to $23.6 million, or $0.20 per share, in the year-ago quarter. Its earnings from continuing operations climbed to $0.58 per share from $0.21 per share. Its revenue slipped to $1.51 billion from $1.74 billion. However, analysts were expecting earnings of $0.39 per share on revenue of $1.58 billion. The average estimate among 5 Estimize users was for earnings of $0.40 per share and revenue of $1.58 billion. Adjusted operating profit from continuing operations jumped to $126.0 million for the third quarter, from $58.1 million in the year-ago quarter. Adjusted EBITDA from continuing operations climbed to $158.5 million from $90.4 million. Americas Recycling segment posted an adjusted operating loss of $2.0 million for the third quarter, versus adjusted operating loss of $1.1 million in the year-ago quarter. Adjusted operating profit for Americas Mills segment jumped to $84.2 million from $74.1 million, while adjusted operating profit for Americas Fabrication segment climbed to $22.9 million from $1.2 million. International Mill segment posted an adjusted operating profit of $6.1 million for the third quarter, up from $2.0 million in the year-earlier period. Adjusted operating profit for International Marketing and Distribution segment jumped to $37.7 million from $2.0 million. At May 31, 2015, the company had $381 million in cash and cash equivalents and around $1.0 billion in total liquidity. Joe Alvarado, Chairman of the Board, President, and CEO, said, "Fiscal third quarter adjusted EBITDA from continuing operations represents our highest adjusted EBITDA since the first quarter of fiscal 2009. Our domestic mills continued to benefit from expanding metal margins as a result of lower raw material prices when compared to one year ago. Although shipments from a number of our locations in the central and eastern regions of the U.S. were delayed as a result of record amounts of rainfall in Texas and the surrounding states in the latter part of our third quarter, we are confident in our expectation that U.S. construction activity will continue to improve during the summer months translating into strong activity levels within our domestic business." Commercial Metals shares surged 2.29 percent to $17.00 in pre-market trading.