The stock surged 7.46% to $17.07 after the steel and metal products manufacturer reported earnings of $80.4 million, or 67 cents a share, for its fiscal third quarter, beating the estimate of 63 cents a share by analysts polled by Zacks.
That also represented a big earnings increase for Commercial Metals over the same quarter a year ago, when the Irving, Texas-based manufacturer reported earnings of $42.3 million, or 36 cents per share.
Commercial Metals also reported a 33% increase in revenue, to $1.6 billion for the quarter.
The company cited strong construction activity for the big earnings increase, "solid industrial production levels," and the overall strength of the U.S. economy, as well as its Polish counterpart, where the firm also does business.
There has also been an "improvement in the fundamentals in the fabrication segment," with the firm having cleared out the "majority of the lower priced work in our backlog," said Barbara R. Smith, chairman, president and CEO.
"The strong results for the quarter reflect the strength of construction activity, as well as solid industrial production levels and the resilient U.S. and Polish economies," Smith said in a press statement. "Our recent acquisition, our greenfield Oklahoma facility, and introduction of hot spooled rebar were all meaningful contributors to top and bottom line financial results."