Commercial Metals (NYSE: CMC) saw its shares gain ground early Monday, on the release of first-quarter financial figures.
Q1 Non-GAAP EPS were $2.24 which beat estimates by 28 cents. Revenue of $2.23B (+12.6% Y/Y) beat projections by $30 million
Core EBITDA of $425.0 million increased 30% from the prior year period.
Continued year-over-year growth in North America downstream backlog and project bidding volumes
Historically strong Europe segment profitability benefiting from favorable cost structure driving market share gains
The company reported good progress on strategic growth initiatives; Arizona 2 project on target for spring 2023 start-up, announced fourth micro mill location in West Virginia
"Looking ahead, we anticipate good financial results in the second quarter compared to historical standards. Finished steel volumes in North America and Europe are expected to follow typical seasonal patterns, which have historically declined from our first quarter levels due to weather conditions and holidays. Additionally, volumes in Europe may be impacted by economic uncertainty. While we anticipate margins over scrap in both North America and Europe to remain elevated in relation to historical levels, we expect they will compress from first quarter levels."
On January 5, the board of directors declared a quarterly dividend of $0.16 per share of CMC common stock payable to stockholders of record on January 19. The dividend to be paid on February 2, marks the 233rd consecutive quarterly payment by the Company, and represents a 14% increase from the dividend paid in February.
CMC shares gathered $1.32, or 2.6%, to $51.93.
