Ternium (TX) to Report Q3 Earnings: What's in the Cards?
Ternium S.A. TX is slated to release third-quarter 2022 results ahead of bell on Nov 3.
The Luxembourg-based company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.1%. It posted an earnings surprise of roughly 11.2% in the last reported quarter. The impacts of lower steel prices, softer demand and higher costs are likely to reflect on its third-quarter results.
The stock has lost 37.4% in the past year compared with the industry’s 13.8% decline.
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Let’s see how things are shaping up for this announcement.
What do the Estimates Indicate?
The Zacks Consensus Estimate for Ternium’s third-quarter consolidated sales is currently pegged at $4,105 million, which calls for a decline of 10.6% from the year-ago quarter’s tally.
Some Factors at Play
The company’s third-quarter results are likely to have been impacted by weaker steel prices and softer demand. In Mexico, the company is likely to have witnessed healthy demand from industrial customers. However, demand in automotive is likely to have been affected by supply-chain disruptions.
The company is also expected to have witnessed weaker demand in the commercial market. Ternium, in its second-quarter call, said that the commercial market is witnessing lackluster demand due to destocking driven by the significant decline in steel prices over the last few months, inflation and higher interest rates, which are affecting end-use customers.
Ternium is also expected to have been affected by lower steel prices in the third quarter. Softer prices are likely to have hurt its margins.
Higher costs are also likely to have affected the company’s performance in the September quarter. Ternium is seeing higher costs for many of its raw materials along with increased slab costs.
Ternium S.A. Price and EPS Surprise
Ternium S.A. price-eps-surprise | Ternium S.A. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Ternium this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Ternium is -18.82%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at $1.70. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ternium currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Koppers Holdings Inc. KOP, slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
Brigham Minerals, Inc. MNRL, scheduled to release earnings on Nov 3, has an Earnings ESP of +6.34%.
The Zacks Consensus Estimate for MNRL's earnings for the third quarter is currently pegged at 67 cents. MNRL currently carries a Zacks Rank #3.
Huntsman Corporation HUN, scheduled to release earnings on Nov 4, has an Earnings ESP of +3.59%.
The consensus estimate for Huntsman’s third-quarter earnings is currently pegged at 72 cents. HUN currently carries a Zacks Rank #3.
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Ternium S.A. (TX) : Free Stock Analysis Report
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Brigham Minerals, Inc. (MNRL) : Free Stock Analysis Report
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