Commercial Metals Company, trading under the ticker CMC on the New York Stock Exchange, is preparing to release its first quarter earnings report for 2025. The announcement is scheduled to be made ahead of market opening on Thursday, January 8, 2025. This upcoming earnings release is drawing interest from investors anticipating robust quarterly results compared to the same period last year.
Analysts currently estimate that Commercial Metals will report earnings per share of approximately $1.54 for the first quarter, reflecting a significant increase over the $0.78 per share recorded in the corresponding quarter of the previous year. Revenue projections for the quarter suggest a rise to about $2.05 billion, up from $1.91 billion a year prior, according to market intelligence provided by Benzinga Pro.
Investor sentiment towards the company has recently shifted positively, marked notably by an upgrade from Jefferies analyst Christopher LeFemina on December 10, who moved his rating on Commercial Metals stock from Hold to Buy. Along with this rating improvement, LeFemina elevated the price target for the shares from $70 to $78, signaling increased confidence in the company's near-term prospects.
In addition to anticipated capital appreciation, investors often evaluate dividend income as part of their total return expectations. Commercial Metals currently offers an annual dividend yield near 0.97%, which translates into quarterly dividend payouts of $0.18 per share, totaling $0.72 annually. This dividend yield, while modest, presents opportunities for income-focused investors to estimate potential monthly earnings based on share ownership.
For example, an income target of $500 per month, which equates to $6,000 annually, requires a certain number of shares owned to receive this level of dividend payment. Dividing the yearly income goal by the current annual dividend per share of $0.72 indicates that holders would need approximately 8,333 shares to reach a $6,000 annual payout. Based on the recent CMC share price around $74.61, this volume of shares corresponds to an investment of roughly $621,725.
Alternatively, a more conservative monthly dividend income goal of $100, or $1,200 annually, demands proportionally fewer shares. Using the same division calculation, an investor would need to possess about 1,667 shares of Commercial Metals, equating to an investment near $124,375, in order to achieve $100 per month in dividend distributions.
It is important to recognize that dividend yields fluctuate due to changes in stock prices and dividend declarations. The dividend yield is calculated as the annual dividend payment divided by the stock's current market price. Consequently, if the stock price appreciates, holding dividends constant, the yield percentage decreases; conversely, if the stock price declines, the yield percentage increases. Additionally, companies may adjust dividend payments over time, which can directly impact the yield regardless of price movement.
To contextualize these dynamics, consider a hypothetical stock that pays $2 annually in dividends. At a share price of $50, this scenario yields a 4% dividend. Should the price climb to $60, the yield diminishes to approximately 3.33%. If the price falls to $40, the dividend yield rises to 5%. Similarly, if dividend payments rise or fall while the share price remains unchanged, the dividend yield correspondingly increases or decreases.
Commercial Metals’ share price has shown upward momentum recently, with a 2.6% gain bringing the closing price to $74.61 on a recent trading day. These price movements contribute to the ongoing assessment of dividend attractiveness for investors considering income strategies.
Overall, as Commercial Metals approaches its 2025 first quarter earnings release, the combination of anticipated improved financial performance, analyst rating upgrades, and dividend considerations makes the stock noteworthy for investors seeking both growth and income potential. Prospective investors should weigh the required investment scale against dividend yield fluctuations and potential company earnings outcomes when evaluating CMC as part of their portfolios.