Nucor's (NUE) Earnings Lag, Revenues Beat Estimates in Q1

Zacks Equity Research

April 23, 2024 at 8:51 a.m.·3 min read

Nucor Corporation NUE reported earnings of $3.46 per share in first-quarter 2024, down from earnings of $4.45 in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of $3.62.

The company recorded net sales of $8,137.1 million, down around 7% year over year. The figure beat the Zacks Consensus Estimate of $8,030.1 million.

Nucor Corporation Price, Consensus and EPS Surprise

Nucor Corporation price-consensus-eps-surprise-chart | Nucor Corporation Quote

Operating Figures

Total sales tons to outside customers for steel mills in the first quarter were 4,676,000 tons, down 3% year over year. The figure beat our estimate of 4,639,000 tons.

The average sales price for steel mills was $1,108 per ton for the quarter. The metric was below our estimate of $1,155 per ton.

Overall operating rates at the company’s steel mills rose to 82% in the first quarter of 2024 from 79% in the year-ago quarter.

Segment Highlights

Earnings of the company’s steel mills unit increased sequentially in the reported quarter on higher average selling prices and increased volumes, especially at its sheet mills

Earnings in the steel products division were lower sequentially in the first quarter due to reduced prices and a decline in volumes.

The raw materials segment’s earnings rose sequentially in the reported quarter.

Financial Position

Cash and cash equivalents were $4,557.8 million at the end of the quarter, up around 20% year over year. Long-term debt was $6,647.6 million, essentially flat year over year.

The company repurchased around 5.5 million shares of its common stock at an average price of $180.79 per share during the quarter.

Outlook

Nucor anticipates a decline in earnings in the second quarter of 2024 compared with the prior quarter. The expected downside can be attributed to lower earnings in the steel mills segment, mainly due to reduced average selling prices partly offset by slightly higher volumes.

Earnings in the steel products segment are forecast to decline moderately in the second quarter due to reduced average selling prices, partly masked by higher volumes. However, Nucor expects a sequential rise in earnings in the raw materials segment for the first quarter of 2024 due to higher profitability of its direct reduced iron facilities and scrap processing operations.

Price Performance

Shares of Nucor are up 23.6% in a year compared with the industry’s 10.7% rise.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

NUE currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Carpenter Technology Corporation CRS and Innospec Inc. IOSP.

Denison Mines beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 96% in the past year. DNN carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.96, indicating a year-over-year surge of 247.4%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have rallied around 62% in the past year. CRS currently carries a Zacks Rank #2 (Buy).

The consensus estimate for Innospec’s current-year earnings is pegged at $6.77 per share, indicating a 11.2% year-over-year rise. IOSP, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 10.5%. The company’s shares have gained around 16% in the past year.

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Nucor Corporation (NUE) : Free Stock Analysis Report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Denison Mine Corp (DNN) : Free Stock Analysis Report

Innospec Inc. (IOSP) : Free Stock Analysis Report

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