Hot stock to watch: Commercial Metals Company (NYSE: CMC)

Free $100 Forex No-Deposit Bonus

Commercial Metals Company (NYSE: CMC) stock rose 5.56% on June 18th, 2020 and continued its bullish momentum on June 19th, 2020 (as of 10:29 am GMT-4; Source: Google finance) after the company posted better than expected earnings for the third quarter of FY 20. At the third quarter end, the company had liquidity in more than of $1 billion, including $462 million of cash and $604 million of availability on the credit and accounts receivable programs. The company has reported earnings from continuing operations of $64.2 million compared to $78.6 million in the third quarter of 2019. In the third quarter, the company generated $278 million of cash from operating activities with $157 million that came from working capital liquidation. The company generated $787 million of cash from operating activities and free cash flow of totaled $606 million.

CMC in the third quarter of FY 20 has reported the adjusted earnings per share of 59 cents, beating the analysts’ estimates for the adjusted earnings per share of 41 cents, according to analysts polled by Thomson Reuters analysts polled by Thomson Reuters. The company had reported the adjusted revenue of $1.3 billion in the third quarter of FY 20, which is in line with the analysts’ estimates for revenue of $1.3 billion. The company has posted core EBITDA from continuing operations of $154.8 million for the third quarter of 2020, which reflects a slight increase from the $153.6 million reported in the third quarter of last year despite the pandemic impacting global economy. The Americas Recycling segment has delivered an adjusted EBITDA loss of $1.7 million in the third quarter of 2020, compared to EBITDA of $12.3 million in the same period last year. The market environment for scrap was already challenging exiting the winter months. The Americas mills segment has delivered an adjusted EBITDA of $133.2 million for the third quarter of 2020, compared to adjusted EBITDA of $158.1 million for the third quarter of 2019. Shipment volumes has fallen by 4% from a year ago. International mill segment has delivered an adjusted EBITDA of $14.3 million for the third quarter of 2020, compared to adjusted EBITDA of $24.1 million in the prior-year quarter. The modest fall in shipments from a year ago was on the back of lower opportunistic billet volumes last year.

Additionally, the company has declared a quarterly dividend of $0.12 per share of CMC common stock payable to stockholders on July 20, 2020, of record on July 6, 2020.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.