Commercial Metals (CMC) saw its shares drop sharply by 5.14% during intraday trading on Thursday, as investors reacted negatively to the company's cautious outlook for the second quarter of fiscal 2026.
The decline came despite CMC reporting strong Q1 results, with adjusted EPS of $1.84 beating estimates of $1.56 and revenue of $2.12 billion surpassing expectations. The company attributed the robust performance to solid demand and operational efficiency.
However, management warned that Q2 core EBITDA is expected to decline modestly due to seasonal slowdowns, planned maintenance outages, and acquisition-related expenses. This guidance overshadowed the positive Q1 earnings, leading to the sell-off.
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