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) to Report Q3 Earnings: What's in the Offing?
Read MoreHide Full Article
Nucor Corporation (NUE - Free Report) is set to release third-quarter 2020 results ahead of the bell on Oct 22. The company’s results are likely to reflect strength in non-residential construction markets. However, weaker year-over-year steel prices are likely to have weighed on its performance.
The U.S. steel giant delivered an earnings surprise of 55.9%, on average, over the trailing four quarters. It posted an earnings surprise of 157.1% in the last reported quarter.
Nucor’s shares are down 13% year to date, compared with the industry’s 12.3% decline.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
Nucor, last month, issued earnings guidance for the third quarter. It expects earnings per share between 50 cents and 55 cents for the quarter. This reflects a rise from 36 cents in the second quarter of 2020 and a decline from 90 cents recorded in the year-ago quarter.
The Zacks Consensus Estimate for third-quarter consolidated revenues for Nucor is currently pegged at $4,455 million, reflecting a year-over-year decline of 18.5%.
Moreover, the Zacks Consensus Estimate for total steel mills shipments for the quarter currently stands at 5,200,000 tons, indicating a decline of 10.2% year over year. The consensus estimate for total tons shipped to outside customers is currently pegged at 5,951,000 tons, reflecting a decrease of 9.2% on a year-over-year basis.
The Zacks Consensus Estimate for average sales price per ton for the company’s steel mills unit stands at $644, suggesting a 9.4% year-over-year decline. The same for the steel products unit is pegged at $1,328, indicating a year-over-year decline of 7.9%.
A Few Factors to Watch
The company’s downstream products segment is likely to have gained from non-residential construction markets in the quarter to be reported. Nucor, last month, said that the segment witnessed a strong third quarter driven by the resiliency of non-residential construction.
Moreover, the company’s bar and structural mills also gained from non-residential construction markets. Utilization rates for its sheet mills also improved throughout the third quarter.
Nucor also witnessed a rise in demand and pricing for raw materials as well as sheet steel in the later part of the third quarter. However, lower pricing for DRI (direct reduced iron) is expected to have hurt the company’s raw materials unit.
Meanwhile, lower year-over-year domestic steel prices are likely to have exerted downward pressure on Nucor’s selling prices and hurt its revenues and margins in the to-be-reported quarter.
The coronavirus outbreak led to a downswing in U.S. steel prices due to a downturn in demand across major end-use markets like automotive and construction. Weak end-market demand put significant pressure on steel prices in July and August. However, prices started to recover in September on U.S. steel mills’ back-to-back price hike actions, tight supply and a revival in end-market demand, especially in automotive. Despite the rebound, prices remain well below the year-ago level.
Our proven model does not conclusively predict an earnings beat for Nucor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Nucor is 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 53 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nucor currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Newmont Corporation (NEM - Free Report) , scheduled to release earnings on Oct 29, has an Earnings ESP of +0.97% and carries a Zacks Rank #1.
Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Oct 29, has an Earnings ESP of +1.97% and carries a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Nucor (NUE) to Report Q3 Earnings: What's in the Offing?
Nucor Corporation (NUE - Free Report) is set to release third-quarter 2020 results ahead of the bell on Oct 22. The company’s results are likely to reflect strength in non-residential construction markets. However, weaker year-over-year steel prices are likely to have weighed on its performance.
The U.S. steel giant delivered an earnings surprise of 55.9%, on average, over the trailing four quarters. It posted an earnings surprise of 157.1% in the last reported quarter.
Nucor’s shares are down 13% year to date, compared with the industry’s 12.3% decline.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
Nucor, last month, issued earnings guidance for the third quarter. It expects earnings per share between 50 cents and 55 cents for the quarter. This reflects a rise from 36 cents in the second quarter of 2020 and a decline from 90 cents recorded in the year-ago quarter.
The Zacks Consensus Estimate for third-quarter consolidated revenues for Nucor is currently pegged at $4,455 million, reflecting a year-over-year decline of 18.5%.
Moreover, the Zacks Consensus Estimate for total steel mills shipments for the quarter currently stands at 5,200,000 tons, indicating a decline of 10.2% year over year. The consensus estimate for total tons shipped to outside customers is currently pegged at 5,951,000 tons, reflecting a decrease of 9.2% on a year-over-year basis.
The Zacks Consensus Estimate for average sales price per ton for the company’s steel mills unit stands at $644, suggesting a 9.4% year-over-year decline. The same for the steel products unit is pegged at $1,328, indicating a year-over-year decline of 7.9%.
A Few Factors to Watch
The company’s downstream products segment is likely to have gained from non-residential construction markets in the quarter to be reported. Nucor, last month, said that the segment witnessed a strong third quarter driven by the resiliency of non-residential construction.
Moreover, the company’s bar and structural mills also gained from non-residential construction markets. Utilization rates for its sheet mills also improved throughout the third quarter.
Nucor also witnessed a rise in demand and pricing for raw materials as well as sheet steel in the later part of the third quarter. However, lower pricing for DRI (direct reduced iron) is expected to have hurt the company’s raw materials unit.
Meanwhile, lower year-over-year domestic steel prices are likely to have exerted downward pressure on Nucor’s selling prices and hurt its revenues and margins in the to-be-reported quarter.
The coronavirus outbreak led to a downswing in U.S. steel prices due to a downturn in demand across major end-use markets like automotive and construction. Weak end-market demand put significant pressure on steel prices in July and August. However, prices started to recover in September on U.S. steel mills’ back-to-back price hike actions, tight supply and a revival in end-market demand, especially in automotive. Despite the rebound, prices remain well below the year-ago level.
Nucor Corporation Price and EPS Surprise
Nucor Corporation price-eps-surprise | Nucor Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Nucor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Nucor is 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 53 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nucor currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines Limited (AEM - Free Report) , scheduled to release earnings on Oct 28, has an Earnings ESP of +14.25% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newmont Corporation (NEM - Free Report) , scheduled to release earnings on Oct 29, has an Earnings ESP of +0.97% and carries a Zacks Rank #1.
Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Oct 29, has an Earnings ESP of +1.97% and carries a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>