Cemex (NYSE:CX) Releases Quarterly Earnings Results, Meets Estimates

Cemex (NYSE:CX) released its quarterly earnings results on Thursday. The construction company reported $0.24 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.24, Zacks reports. Cemex had a net margin of 2.83% and a return on equity of 3.76%. The company had revenue of $4.59 billion during the quarter, compared to the consensus estimate of $4.46 billion.

Here are the key takeaways from Cemex’s conference call:

• CEMEX reported strong Q2 results, with EBITDA above $1 billion and adjusted EBITDA up 19%, while EBIT grew 29% and free cash flow from operations hit a second-quarter record of $651 million.
• Management raised full-year EBITDA guidance to 16%–17% year-over-year growth, citing continued benefits from Project Cutting Edge, pricing discipline, and lower expected interest expense.
• Project Cutting Edge is outperforming expectations, with savings target increased from $400 million to $475 million, most of the incremental savings expected in 2027 and tied largely to procurement and operational efficiencies.
• Mexico remained the standout market with a second straight quarter of cement volume growth, but management expects margins and growth to normalize in the second half as competitor outages fade and mix becomes less favorable.
• U.S. and Europe were mixed: the U.S. was hit by weather and higher costs, while Europe faced soft demand and heat-wave disruptions, though both regions still benefited from pricing and cost-saving measures.

Cemex Stock Performance

NYSE CX opened at $12.07 on Friday. The company has a quick ratio of 0.63, a current ratio of 0.87 and a debt-to-equity ratio of 0.35. Cemex has a twelve month low of $8.15 and a twelve month high of $13.67. The business has a 50-day moving average price of $12.57 and a 200-day moving average price of $12.23. The firm has a market cap of $17.49 billion, a price-to-earnings ratio of 35.52 and a beta of 1.52.

Cemex Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 29th. Stockholders of record on Wednesday, June 17th were paid a $0.0312 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 1.0%. This is a positive change from Cemex’s previous quarterly dividend of $0.02. The ex-dividend date of this dividend was Wednesday, June 17th. Cemex’s dividend payout ratio is currently 37.50%.

Insider Buying and Selling

In other Cemex news, insider Herrera Jesus Vicente Gonzalez sold 35,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $12.16, for a total value of $425,600.00. Following the completion of the transaction, the insider directly owned 846,010 shares in the company, valued at $10,287,481.60. This represents a 3.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Jones Financial Companies Lllp lifted its stake in shares of Cemex by 334.7% in the 1st quarter. Jones Financial Companies Lllp now owns 9,189 shares of the construction company’s stock valued at $52,000 after purchasing an additional 7,075 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Cemex by 58.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 7,187,143 shares of the construction company’s stock worth $40,320,000 after acquiring an additional 2,661,030 shares during the last quarter. Cetera Investment Advisers grew its holdings in Cemex by 53.2% during the 2nd quarter. Cetera Investment Advisers now owns 57,269 shares of the construction company’s stock valued at $397,000 after purchasing an additional 19,878 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Cemex by 256.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,298 shares of the construction company’s stock worth $30,000 after purchasing an additional 3,093 shares during the period. Finally, Invesco Ltd. boosted its position in shares of Cemex by 57.1% during the second quarter. Invesco Ltd. now owns 50,480 shares of the construction company’s stock valued at $350,000 after buying an additional 18,348 shares during the period. Institutional investors own 82.97% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on CX shares. Santander upgraded Cemex to an “outperform” rating in a report on Thursday, June 11th. Barclays lifted their price target on Cemex from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Friday. Wall Street Zen raised Cemex from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. JPMorgan Chase & Co. raised their price objective on Cemex from $14.50 to $15.00 and gave the company an “overweight” rating in a research report on Wednesday, July 8th. Finally, Scotiabank upped their price target on Cemex from $14.10 to $14.50 and gave the stock an “outperform” rating in a research report on Tuesday, July 14th. Seven research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.07.

Cemex Company Profile

Cemex (NYSE: CX) is a global building materials company headquartered in Monterrey, Mexico. The company produces, distributes and sells cement, ready-mix concrete and aggregates, as well as related building materials, to construction markets in more than 50 countries. Cemex’s product portfolio also includes asphalt and mortar mixes, waste-derived fuels and other complementary construction solutions, supported by a network of production facilities, distribution centers and logistics operations.

Founded in 1906 as Cementos Hidalgo, the company adopted the Cemex name in 1976 following a series of domestic mergers and expansions.