Cemex Stock Rises After Q2 Results, Notes Higher Volumes And Prices

Cemex SAB de CV ADR CX reported second-quarter sales growth of 33% year-over-year (+25% on a like-to-like basis) to $3.86 billion, versus the consensus of $3.63 billion. The sales growth reflects higher volumes and prices in local currency terms.
Sales across markets: Mexico $935 million (+65% Y/Y), United States $1.13 billion (+13% Y/Y), EMEA $1.29 billion (+32% Y/Y), and South, Central America and the Caribbean $418 million (+50% Y/Y).
Cement volume increased +24% Y/Y, ready-mix volume increased 20%, and aggregates volume increased 16%.
Earnings per ADS improved to $0.18 from $0.01 in 2Q20, versus the consensus of $0.18.
The gross margin expanded by 160 bps to 33.7%. The operating EBITDA increased by 48% Y/Y to $818 million, and the margin expanded by 210 bps to 21.2%.
Free cash flow for the quarter increased by 241% to $293 million.
The leverage ratio was 2.85 times, a reduction of 0.76 times compared to Q1 and 1.72 times lower versus 2Q20.
FY21 Outlook: The company expects operating EBITDA of ~$3.1 billion, Consolidated volume growth of 5% to 7% Cement, 3% to 5% Ready-mix and 2% to 4% Aggregates.
Price Action: CX shares are up 2.14% at $8.58 during the market session on the last check Thursday.