Commercial Metals Co (NYSE:CMC) reported its fiscal third quarter adjusted EBITDA short of expectations but guided to improved earnings across segments, according to JPMorgan.
The Commercial Metals Analyst: Analyst Bill Peterson reiterated a Neutral rating with a price target of $52.
The Commercial Metals Thesis: The company reported adjusted EBITDA of $204 million, representing a 20% year-on-year decline and missing consensus of $214 million, Peterson said in the note.
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Commercial Metals tried a rebar price hike earlier this month, a part of the hike did not stick as a large peer did not follow suit, he stated.
"While the downstream backlog was steady Y/Y, we believe pricing for new order entry faced competitive pressures," the analyst wrote.
Yet, he added, the fiscal fourth quarter guidance is solid, indicating improvement in North American and European Union earnings.
The analyst raised his EBITDA estimate for the quarter by 21% to $284 million.
CMC Price Action: Shares of Commercial Metals had risen by 2.90% to $50.70 at the time of publication on Tuesday.
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