CMC(US:CMC) ZACKSยท2025-01-07 18:41Core Viewpoint - Commercial Metals Company (CMC) reported a significant decline in earnings for the first quarter of fiscal 2025, with adjusted earnings per share (EPS) of 78 cents, down 47.7% from $1.49 in the prior-year quarter, aligning with Zacks Consensus Estimate [1][3]. Financial Performance - CMC's net sales for the reported quarter were $1.91 billion, a decrease of 4.7% from $2 billion in the same quarter last year, but exceeded the Zacks Consensus Estimate of $1.89 billion [4]. - The cost of goods sold was $1.6 billion, down 0.1% year-over-year, while gross profit fell 22.8% to approximately $308 million [6][7]. - Core EBITDA for the quarter was $211 million, reflecting a decline of 32.8% from the previous year [6][7]. Segment Performance - The North America Steel Group segment generated net sales of $1.52 billion, down from $1.59 billion year-over-year, with adjusted EBITDA of around $188 million compared to $267 million in the prior-year quarter [8]. - The Europe Steel Group segment reported revenues of $209 million, a 7% decrease from the previous year, with adjusted EBITDA of $25.8 million, down from $38.9 million [9][10]. - The Emerging Businesses Group segment had net sales of approximately $169 million, down from $177 million year-over-year, with adjusted EBITDA of $22.7 million compared to $30.9 million in the prior-year quarter [11]. Cash Flow and Balance Sheet - At the end of the first quarter of fiscal 2025, CMC reported cash and cash equivalents of roughly $856 million, slightly down from $858 million at the end of fiscal 2024 [12]. - Long-term debt remained flat at $1.15 billion, while cash generated from operating activities was approximately $213 million, down from $261 million in the prior-year quarter [12]. Share Repurchase and Outlook - CMC repurchased shares worth $50.4 million during the quarter, with $353.4 million remaining under the current share buyback authorization [13]. - The company anticipates a sequential decline in consolidated financial results for the second quarter of fiscal 2025, with expectations of lower adjusted EBITDA margins due to scrap cost pressures [14]. Stock Performance - CMC's shares have decreased by 2.7% over the past year, contrasting with a 31.5% decline in the industry [16].