Preview: Commercial Metals's Earnings

Commercial Metals CMC releases its next round of earnings this Thursday, June 17. Here is Benzinga's essential guide to Commercial Metals's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Commercial Metals reporting earnings of $0.84 per share on sales of $1.69 billion. In the same quarter last year, Commercial Metals announced EPS of $0.59 on revenue of $1.34 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 42.37%. Sales would be up 25.93% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Over the last 52-week period, shares of Commercial Metals are up 51.97%.

Do not be surprised to see the stock move on comments made during its conference call. Commercial Metals is scheduled to hold the call at 11:00:00 ET and can be accessed here.