Commercial Metals Co. (NYSE:CMC) reported fiscal second-quarter results Thursday that missed adjusted EPS estimates but beat on revenue, sending shares lower.
Earnings Miss, Revenue Beat
CMC reported fiscal second-quarter adjusted earnings of $1.16 per diluted share, missing the $1.30 estimate, while sales of $2.132 billion beat the $2.091 billion estimate.
Net earnings were $93.0 million, or 83 cents per diluted share, on net sales of $2.1 billion. This compares with $25.5 million, or 22 cents per diluted share, on net sales of $1.8 billion a year earlier.
Margins Expand, EBITDA Surges
Consolidated core EBITDA rose about 114% year over year to $297.5 million, and core EBITDA margin expanded 610 basis points to 14.0%.
The quarter included net after-tax charges of $37.1 million, related primarily to acquisitions and litigation interest. An unrealized gain on commodity hedges partly offset these charges.
Segment Performance
In the North America Steel Group, adjusted EBITDA increased 96.9% to $269.7 million, and the margin improved to 16.8%. Product shipments were stable year over year, while backlog volumes reached their highest level since …