Commercial Metals (CMC) reported quarterly earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.32 per share. This is an improvement from the $0.9 per share earned in the same period last year. The numbers have been adjusted for one-time events.
This quarterly report shows an earnings surprise of +3.79%. A quarter earlier, it was anticipated that this producer and recycler of steel and metal goods would achieve earnings of $0.85 per share, but the actual result was $0.74, resulting in a surprise of -12.94%.
In the past four quarters, the company has exceeded the expected earnings per share figures only one time.
Commercial Metals, part of the Zacks Steel - Producers sector, reported revenues of $2.11 billion for the quarter ending August 2025, exceeding the Zacks Consensus Estimate by 2.18%. This is an increase from the $2 billion in revenues recorded during the same period in the previous year. The company has exceeded revenue expectations according to consensus forecasts on three occasions within the past four quarters.
The long-term viability of the stock's short-term price changes, influenced by the latest figures and projected future earnings, will largely rely on the comments made by the management during the earnings call.
Commercial Metals stock has increased by approximately 20.3% since the start of the year, compared to the S&P 500's rise of 13.4%.
What Comes Next for Commercial Metals?
Although Commercial Metals has done better than the market this year, investors are wondering: what will happen to the stock next?
There are no simple solutions to this important question, yet one consistent indicator that can assist investors in dealing with it is the company's earnings forecast. This not only involves current collective expectations for the upcoming quarter(s), but also how these projections have evolved recently.
Studies have found a clear link between short-term stock fluctuations and changes in earnings forecasts. Traders can monitor these changes on their own or use a reliable rating system such as the Zacks Rank, which has a proven history of utilizing the impact of earnings forecast adjustments.
Before this earnings announcement, the trend in estimate revisions for Commercial Metals was positive. Although the size and direction of these revisions might change after the company's recently released earnings report, the current situation results in a Zacks Rank #1 (Strong Buy) for the stock. Therefore, the shares are anticipated to perform better than the market in the near term. You can view the full list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be intriguing to observe how projections for the upcoming quarters and the current fiscal year evolve in the coming days. The current consensus forecast for EPS is $1.11 on $2 billion in sales for the next quarter and $4.98 on $8.25 billion in sales for the current fiscal year.
Investors should take note that the future prospects of the industry can significantly affect the stock's performance. Regarding the Zacks Industry Rank, Steel - Producers is positioned in the top 39% among the over 250 Zacks industries. According to our analysis, the top 50% of Zacks-ranked industries have outperformed the bottom 50% by more than a 2-to-1 margin.
Another company in the same sector, Nucor (NUE), has not yet announced its earnings for the quarter ending September 2025. The results are anticipated to be published on October 27.
The steel company is anticipated to report quarterly earnings of $2.16 per share in its next release, marking a 45% increase compared to the previous year. The average EPS forecast for the quarter has been reduced by 5.8% in the past 30 days to reach the current figure.
Nucor's income is projected to reach $8.16 billion, representing a 9.7% increase compared to the previous year's quarter.
This piece was first released on Zacks Investment Research (Healthy urvival).