Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
What the hell is going on here? World's biggest cement outfit, plus other materials. Has been falling like a rock. 10 year chart shows it has gone nowhere in in that time. CX. Cemex. I've heard there are governance issues?
Just one opinion out there. By: Carl Surran, SeekingAlpha news editor
"Cemex (CX -2.8%) slides after Goldman Sachs downgraded shares to Neutral from Buy with a $6 price target on Tuesday, saying energy cost inflation likely will not be fully offset by cement price hikes.
"Given the swift increase in energy costs recently, we believe short-term earnings will remain pressured which should drive downward earnings revisions in the following quarters and possibly drive lower guidance" once Cemex announces Q1 results on April 28, Goldman's analyst Bruno Amorim writes.
The analyst sees a potential downward revision to Cemex's guidance for mid-single digit EBITDA growth is "likely given that fuel prices have risen significantly, forecasting operating EBITDA falling 6% Y/Y in FY 2022 vs. Bloomberg consensus of a 5% gain.
Cemex's Q4 net profit nearly tripled to $195M but well below analyst consensus estimates."
Comments
"Cemex (CX -2.8%) slides after Goldman Sachs downgraded shares to Neutral from Buy with a $6 price target on Tuesday, saying energy cost inflation likely will not be fully offset by cement price hikes.
"Given the swift increase in energy costs recently, we believe short-term earnings will remain pressured which should drive downward earnings revisions in the following quarters and possibly drive lower guidance" once Cemex announces Q1 results on April 28, Goldman's analyst Bruno Amorim writes.
The analyst sees a potential downward revision to Cemex's guidance for mid-single digit EBITDA growth is "likely given that fuel prices have risen significantly, forecasting operating EBITDA falling 6% Y/Y in FY 2022 vs. Bloomberg consensus of a 5% gain.
Cemex's Q4 net profit nearly tripled to $195M but well below analyst consensus estimates."