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Nucor (NUE) Gears Up for Q1 Earnings: What's in the Offing?
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Nucor Corporation (NUE - Free Report) is set to release first-quarter 2022 results ahead of the bell on Apr 21. The company is likely to have benefited in the first quarter from strong end-market demand and higher year-over-year steel prices.
The U.S. steel giant surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. It has a trailing four-quarter earnings surprise of 0.8%, on average. It posted an earnings surprise of around 1.9% in the last reported quarter.
Nucor’s shares are up 117% over a year, compared with the industry’s 24.5% rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
Nucor, last month, issued its earnings guidance for the first quarter. It anticipates a new record first-quarter earnings of between $7.20 and $7.30 per share.
The Zacks Consensus Estimate for first-quarter consolidated revenues for Nucor is currently pegged at $10,125 million, reflecting a year-over-year increase of 44.3%.
The Zacks Consensus Estimate for first-quarter average sales price per ton for the company’s steel mills unit stands at $1,359, suggesting a 34.4% year-over-year increase. The consensus estimate for average sales price per ton for its steel products unit is pegged at $2,146, suggesting a year-over-year rise of 43.2%.
The Zacks Consensus Estimate for total tons shipped to outside customers is currently pegged at 6,589,000 tons, reflecting a decline of 8.2% on a year-over-year basis.
A Few Factors to Watch
The company’s first-quarter results are likely to reflect strong end-market demand, especially in the non-residential construction market. Strong customer demand has led to a rebound in the automotive market. The company is also seeing strength in heavy and agriculture equipment and improve conditions in energy markets. However, weaker profitability in its steel mill segment on a sequential comparison basis might have impacted its results.
Nucor, in March, said that it sees earnings in the steel mill segment for the first quarter to decline mainly due to the lower profitability of the sheet mills. The average realized selling prices in sheet weakened in the quarter even though end-market demand remained strong. The downside reflects higher import volumes and modest destocking. Nucor also expects its steel products unit to generate higher sequential earnings in the first quarter on continued strong non-residential construction-related demand and higher profit margins.
U.S. steel prices witnessed a significant rally last year supported by strong underlying supply and demand fundamentals. However, prices came under pressure since the beginning of the fourth quarter of 2021, partly due to rising production levels.
The benchmark hot-rolled coil (“HRC”) prices started to cool off since October after peaking in September 2021, dragged down by shorter lead times and rising supply. Prices slumped to nearly $1,000 per short ton at the beginning of March 2022. However, HRC prices have recovered of late amid the supply worries stemming from Russia's invasion of Ukraine along with extending lead times. Prices have rebounded in the recent weeks to above $1,400 per short ton.
Higher year-over-year domestic steel prices are likely to have boosted Nucor’s selling prices and aided its revenues and margins in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for Nucor this season. 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 first quarter is currently pegged at $7.39. 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 #2.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Dow’s first-quarter earnings has been revised 5.2% upward over the past 60 days. The Zacks Consensus Estimate for DOW’s earnings for the quarter is currently pegged at $2.02.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +5.85% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 2.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.05.
Cleveland-Cliffs Inc. (CLF - Free Report) , expected to release earnings on Apr 22, has an Earnings ESP of +10.18%.
Cleveland-Cliffs carries a Zacks Rank #2. The consensus estimate for CLF’s earnings for the first quarter stands at $1.51.
Image: Bigstock
Nucor (NUE) Gears Up for Q1 Earnings: What's in the Offing?
Nucor Corporation (NUE - Free Report) is set to release first-quarter 2022 results ahead of the bell on Apr 21. The company is likely to have benefited in the first quarter from strong end-market demand and higher year-over-year steel prices.
The U.S. steel giant surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. It has a trailing four-quarter earnings surprise of 0.8%, on average. It posted an earnings surprise of around 1.9% in the last reported quarter.
Nucor’s shares are up 117% over a year, compared with the industry’s 24.5% rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
Nucor, last month, issued its earnings guidance for the first quarter. It anticipates a new record first-quarter earnings of between $7.20 and $7.30 per share.
The Zacks Consensus Estimate for first-quarter consolidated revenues for Nucor is currently pegged at $10,125 million, reflecting a year-over-year increase of 44.3%.
The Zacks Consensus Estimate for first-quarter average sales price per ton for the company’s steel mills unit stands at $1,359, suggesting a 34.4% year-over-year increase. The consensus estimate for average sales price per ton for its steel products unit is pegged at $2,146, suggesting a year-over-year rise of 43.2%.
The Zacks Consensus Estimate for total tons shipped to outside customers is currently pegged at 6,589,000 tons, reflecting a decline of 8.2% on a year-over-year basis.
A Few Factors to Watch
The company’s first-quarter results are likely to reflect strong end-market demand, especially in the non-residential construction market. Strong customer demand has led to a rebound in the automotive market. The company is also seeing strength in heavy and agriculture equipment and improve conditions in energy markets. However, weaker profitability in its steel mill segment on a sequential comparison basis might have impacted its results.
Nucor, in March, said that it sees earnings in the steel mill segment for the first quarter to decline mainly due to the lower profitability of the sheet mills. The average realized selling prices in sheet weakened in the quarter even though end-market demand remained strong. The downside reflects higher import volumes and modest destocking. Nucor also expects its steel products unit to generate higher sequential earnings in the first quarter on continued strong non-residential construction-related demand and higher profit margins.
U.S. steel prices witnessed a significant rally last year supported by strong underlying supply and demand fundamentals. However, prices came under pressure since the beginning of the fourth quarter of 2021, partly due to rising production levels.
The benchmark hot-rolled coil (“HRC”) prices started to cool off since October after peaking in September 2021, dragged down by shorter lead times and rising supply. Prices slumped to nearly $1,000 per short ton at the beginning of March 2022. However, HRC prices have recovered of late amid the supply worries stemming from Russia's invasion of Ukraine along with extending lead times. Prices have rebounded in the recent weeks to above $1,400 per short ton.
Higher year-over-year domestic steel prices are likely to have boosted Nucor’s selling prices and aided its revenues and margins in the to-be-reported quarter.
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 season. 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 first quarter is currently pegged at $7.39. 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 #2.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Dow Inc. (DOW - Free Report) , scheduled to release earnings on Apr 21, has an Earnings ESP of +5.45% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dow’s first-quarter earnings has been revised 5.2% upward over the past 60 days. The Zacks Consensus Estimate for DOW’s earnings for the quarter is currently pegged at $2.02.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +5.85% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 2.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.05.
Cleveland-Cliffs Inc. (CLF - Free Report) , expected to release earnings on Apr 22, has an Earnings ESP of +10.18%.
Cleveland-Cliffs carries a Zacks Rank #2. The consensus estimate for CLF’s earnings for the first quarter stands at $1.51.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.