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Nucor (NUE) Issues Q3 Guidance, Sees Lower Steel Mills Earnings
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Nucor Corporation (NUE - Free Report) has released its guidance for the third quarter of 2023. For the quarter, Nucor anticipates earnings to be within the range of $4.10 to $4.20 per share. This projection marks a decrease from the second quarter of 2023, when it reported earnings of $5.81 per share and a decline from the third quarter of 2022, when earnings were $6.50 per share.
The expected decline in earnings for the third quarter of 2023 is primarily attributed to lower earnings in the steel mills segment, which is anticipated to be impacted by lower pricing and, to a lesser extent, reduced volumes. The sheet mills within the segment are expected to experience the most significant impact on earnings.
Similarly, the steel products segment is also expected to see a decline in earnings for the third quarter of 2023 compared to the second quarter of 2023. This decline is due to lower realized prices and reduced volumes.
The raw materials segment is also projected to have lower earnings in the third quarter of 2023 compared to the second quarter of 2023. This is mainly attributed to margin compression at Nucor's DRI facilities and scrap processing operations.
During the third quarter, Nucor has been actively engaged in share repurchases, having repurchased approximately 3 million shares at an average price of $168.99 per share. The company has repurchased approximately 8.8 million shares at an average price of $157.36 per share. Nucor has returned more than $1.76 billion to its stockholders through share repurchases and dividend payments this year.
Nucor has gained 41.4% in the past year, compared with the industry's 47.1% rise in the same period.
Image Source: Zacks Investment Research
Nucor’s second-quarter 2023 earnings of $5.81 per share declined from the previous year’s levels but exceeded the Zacks Consensus Estimate of $5.59. Despite a 19% year-over-year decline in net sales to $9,523.3 million, the company benefited from higher realized prices and improved margins in its steel mills. This lead to a 67.5% sequential increase in steel mills unit earnings. It also saw a 4.1% sequential rise in steel products division earnings on higher volumes.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.48, indicating a year-over-year growth of 205%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 92.4% in the past year.
The consensus estimate for Akzo Nobel’s current-year earnings is pegged at $1.44, indicating a year-over-year growth of 67.4%. In the past 60 days, AKZOY’s current-year earnings estimate has been revised upward by 2.9%. The company’s shares have rallied 25.9% in the past year.
The earnings estimate for Alamos’ current year is pegged at 43 cents, indicating a year-over-year growth of 53.6%. The Zacks Consensus Estimate for AGI current-year earnings has been revised 13.1% upward in the past 60 days. The company’s shares have risen roughly 68.1% in the past year.
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Nucor (NUE) Issues Q3 Guidance, Sees Lower Steel Mills Earnings
Nucor Corporation (NUE - Free Report) has released its guidance for the third quarter of 2023. For the quarter, Nucor anticipates earnings to be within the range of $4.10 to $4.20 per share. This projection marks a decrease from the second quarter of 2023, when it reported earnings of $5.81 per share and a decline from the third quarter of 2022, when earnings were $6.50 per share.
The expected decline in earnings for the third quarter of 2023 is primarily attributed to lower earnings in the steel mills segment, which is anticipated to be impacted by lower pricing and, to a lesser extent, reduced volumes. The sheet mills within the segment are expected to experience the most significant impact on earnings.
Similarly, the steel products segment is also expected to see a decline in earnings for the third quarter of 2023 compared to the second quarter of 2023. This decline is due to lower realized prices and reduced volumes.
The raw materials segment is also projected to have lower earnings in the third quarter of 2023 compared to the second quarter of 2023. This is mainly attributed to margin compression at Nucor's DRI facilities and scrap processing operations.
During the third quarter, Nucor has been actively engaged in share repurchases, having repurchased approximately 3 million shares at an average price of $168.99 per share. The company has repurchased approximately 8.8 million shares at an average price of $157.36 per share. Nucor has returned more than $1.76 billion to its stockholders through share repurchases and dividend payments this year.
Nucor has gained 41.4% in the past year, compared with the industry's 47.1% rise in the same period.
Image Source: Zacks Investment Research
Nucor’s second-quarter 2023 earnings of $5.81 per share declined from the previous year’s levels but exceeded the Zacks Consensus Estimate of $5.59. Despite a 19% year-over-year decline in net sales to $9,523.3 million, the company benefited from higher realized prices and improved margins in its steel mills. This lead to a 67.5% sequential increase in steel mills unit earnings. It also saw a 4.1% sequential rise in steel products division earnings on higher volumes.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the primary materials space are Carpenter Technology Corporation (CRS - Free Report) and Akzo Nobel N.V. (AKZOY - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Alamos Gold Inc. (AGI - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.48, indicating a year-over-year growth of 205%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 92.4% in the past year.
The consensus estimate for Akzo Nobel’s current-year earnings is pegged at $1.44, indicating a year-over-year growth of 67.4%. In the past 60 days, AKZOY’s current-year earnings estimate has been revised upward by 2.9%. The company’s shares have rallied 25.9% in the past year.
The earnings estimate for Alamos’ current year is pegged at 43 cents, indicating a year-over-year growth of 53.6%. The Zacks Consensus Estimate for AGI current-year earnings has been revised 13.1% upward in the past 60 days. The company’s shares have risen roughly 68.1% in the past year.