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Nucor's Board Approves $2Billion Share Repurchase Program

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Nucor Corporation (NUE - Free Report) declared that its board has approved a new share repurchase program authorizing it to buy back shares worth up to $2 billion. Under this program, the company will make share repurchases from time to time in the open market at prevailing market prices through private transactions or block trades.

The timing and amount of share repurchases will depend on certain factors such as share price, market conditions, legal requirements and some other factors.

Shares of Nucor have gained 16% in a year, outperforming the industry’s rise of 4.3%.

 



Nucor saw its profits jump year over year in the second quarter. However, its adjusted earnings and sales for the quarter missed the respective Zacks Consensus Estimate.

As of Jun 30, 2018, Nucor had cash and cash equivalents of around $1.5 billion. Long-term debt at the end of the second quarter was $4,232.2 million, down roughly 30.6% year over year.

During the second-quarter call, Nucor stated it expects third-quarter earnings to improve sequentially. Its steel mills unit’s performance is expected to remain strong in the quarter. The company also expects margins to expand at its sheet and plate mills. Based on the current steel market conditions, Nucor believes that there is sustainable strength in the steel end-use markets.

Nucor also anticipates third-quarter performance of its steel products segment to be similar to the second quarter. However, performance of its raw materials segment is expected to decline in the third quarter due to margin compression.

Nucor has been focusing on growth through strategic acquisitions and is well positioned to gain from such efforts to expand its business. The company also remains committed to expand its production capabilities.
 

Nucor Corporation Price and Consensus

 

Zacks Rank & Stocks to Consider

Nucor is a Zacks Rank #3 (Hold) stock.

A few better-ranked companies in the basic materials space are Huntsman Corporation (HUN - Free Report) , Ingevity Corporation (NGVT - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 9.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected long-term earnings growth rate of 12% and a Zacks Rank #1. The company’s shares have rallied 62.3% in the past year.

Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2 (Buy). Its stock has gained 14.6% in a year’s time.

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