We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nucor (NUE) Provides Upbeat Guidance for Q1, Shares Up
Read MoreHide Full Article
Nucor (NUE - Free Report) has provided upbeat guidance for the first quarter of 2017. The steel giant sees earnings for the quarter to be in the band of $1.10 to $1.15 per share. That is a significant increase from 50 cents per share recorded in the previous quarter and 27 cents a share it earned a year ago. Analysts polled by Zacks currently expect earnings of 76 cents a share on an average for the quarter.
Nucor’s first-quarter guidance include estimated charges of $11.5 million, or 2 cents per share, related to the company’s recent acquisitions of Southland Tube and Republic Conduit.
Nucor said that the expected increase in first-quarter earnings on a sequential comparison basis mainly reflects improved performance in its Steel Mills segment. The improved profitability of this segment has been driven by better performance of the company’s sheet and plate mills.
Notwithstanding the unplanned outage at Nucor Steel Louisiana due to an equipment failure, the company expects increased profitability in its Raw Materials segment in the first quarter on a sequential comparison basis due to improved performance of its scrap processing and brokerage operations as well as in its direct reduced iron (“DRI”) facility in Trinidad.
Nucor, however, envisions reduced profitability in its Steel Products segment on a sequential comparison basis in the first quarter due to seasonality.
The company is seeing renewed growth in demand across non-residential construction and energy markets as well as continued strength in the automotive market. However, softness persists in heavy equipment markets.
Nucor's shares rose around 1.8% to close at $64.60 yesterday, reflecting the buoyant first-quarter earnings guidance.
Nucor has underperformed the Zacks categorized Steel-Producers industry over a year. The company's shares gained 38.3% over this period while the industry saw a gain of 51.9%.
Nucor swung to a profit in fourth-quarter 2016. Earnings and sales for the quarter topped the respective Zacks Consensus Estimate. However, Nucor saw a decline in operating performance in its Steel Mills segment in the fourth quarter compared with the previous quarter, hurt by lower margins with the most significant impact was witnessed at the company’s sheet mills.
The performance of Nucor’s Raw Materials segment in the fourth quarter also declined compared to the third due to lower pricing at its DRI facilities. Nucor also saw reduced profitability in its Steel Products segment on a sequential comparison basis in the fourth quarter.
Nucor remains committed to expand its production capabilities and grow its business through strategic acquisitions. The company recently purchased the assets of Omega Joist – a unit of Samuel, Son & Co., Limited – for an undisclosed price. The buyout allows Nucor to grow its joist and decking business in Canada. It also complements the Vulcraft plant that the company is currently building in Ancaster, Ontario.
Nucor, earlier this year, also closed its purchase of steel electrical conduit maker, Republic Conduit, from Luxembourg-based Tenaris S.A. for $335 million. The acquisition makes Nucor the market leader in steel conduits. Moreover, the company acquired Southland Tube for $130 million in Jan 2017. The buyout strengthens Nucor’s foothold in the hollow structural section (“HSS”) steel tubing market.
U.S. Steel has an expected long-term EPS growth rate of 8%.
Ternium has an expected long-term EPS growth rate of roughly 18.4%.
Angang Steel has an expected earnings growth rate of 45.3% for the current year.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nucor (NUE) Provides Upbeat Guidance for Q1, Shares Up
Nucor (NUE - Free Report) has provided upbeat guidance for the first quarter of 2017. The steel giant sees earnings for the quarter to be in the band of $1.10 to $1.15 per share. That is a significant increase from 50 cents per share recorded in the previous quarter and 27 cents a share it earned a year ago. Analysts polled by Zacks currently expect earnings of 76 cents a share on an average for the quarter.
Nucor’s first-quarter guidance include estimated charges of $11.5 million, or 2 cents per share, related to the company’s recent acquisitions of Southland Tube and Republic Conduit.
Nucor said that the expected increase in first-quarter earnings on a sequential comparison basis mainly reflects improved performance in its Steel Mills segment. The improved profitability of this segment has been driven by better performance of the company’s sheet and plate mills.
Notwithstanding the unplanned outage at Nucor Steel Louisiana due to an equipment failure, the company expects increased profitability in its Raw Materials segment in the first quarter on a sequential comparison basis due to improved performance of its scrap processing and brokerage operations as well as in its direct reduced iron (“DRI”) facility in Trinidad.
Nucor, however, envisions reduced profitability in its Steel Products segment on a sequential comparison basis in the first quarter due to seasonality.
The company is seeing renewed growth in demand across non-residential construction and energy markets as well as continued strength in the automotive market. However, softness persists in heavy equipment markets.
Nucor's shares rose around 1.8% to close at $64.60 yesterday, reflecting the buoyant first-quarter earnings guidance.
Nucor has underperformed the Zacks categorized Steel-Producers industry over a year. The company's shares gained 38.3% over this period while the industry saw a gain of 51.9%.
Nucor swung to a profit in fourth-quarter 2016. Earnings and sales for the quarter topped the respective Zacks Consensus Estimate. However, Nucor saw a decline in operating performance in its Steel Mills segment in the fourth quarter compared with the previous quarter, hurt by lower margins with the most significant impact was witnessed at the company’s sheet mills.
The performance of Nucor’s Raw Materials segment in the fourth quarter also declined compared to the third due to lower pricing at its DRI facilities. Nucor also saw reduced profitability in its Steel Products segment on a sequential comparison basis in the fourth quarter.
Nucor remains committed to expand its production capabilities and grow its business through strategic acquisitions. The company recently purchased the assets of Omega Joist – a unit of Samuel, Son & Co., Limited – for an undisclosed price. The buyout allows Nucor to grow its joist and decking business in Canada. It also complements the Vulcraft plant that the company is currently building in Ancaster, Ontario.
Nucor, earlier this year, also closed its purchase of steel electrical conduit maker, Republic Conduit, from Luxembourg-based Tenaris S.A. for $335 million. The acquisition makes Nucor the market leader in steel conduits. Moreover, the company acquired Southland Tube for $130 million in Jan 2017. The buyout strengthens Nucor’s foothold in the hollow structural section (“HSS”) steel tubing market.
Nucor currently carries a Zacks Rank #3 (Hold).
Nucor Corporation Price and Consensus
Nucor Corporation Price and Consensus | Nucor Corporation Quote
Other Stocks to Consider
Better-placed companies in the steel space include United States Steel Corporation (X - Free Report) , Ternium S.A. (TX - Free Report) and Angang Steel Company Limited , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
U.S. Steel has an expected long-term EPS growth rate of 8%.
Ternium has an expected long-term EPS growth rate of roughly 18.4%.
Angang Steel has an expected earnings growth rate of 45.3% for the current year.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>