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Nucor's (NUE) Earnings Top Estimates in Q1 on Higher Prices
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Nucor Corporation (NUE - Free Report) recorded net earnings of $2,095.6 million or $7.67 per share in first-quarter 2022, rising from net earnings of $942.4 million or $3.10 per share in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of $7.35. First-quarter marked the most profitable quarter in the steel giant’s history.
The company logged net sales of $10,493.3 million, up around 50% year over year. The figure beat the Zacks Consensus Estimate of $10,290.1 million. The company benefited from a rally in sales prices in the quarter.
Nucor Corporation Price, Consensus and EPS Surprise
Total steel mills shipments in the first quarter were 5,814,000 tons, down 11% year over year. Total tons shipped to outside customers were down 11% year over year to 6,394,000 tons. Average sales price jumped 68% year over year.
Steel mill operating rates were 77% in the quarter, down from 95% in the year-ago quarter.
Segment Highlights
Earnings of the company’s steel mills unit fell in the reported quarter on a sequential comparison basis, hurt by lower profitability of the sheet mills. The company saw strong end market demand. However, average realized selling prices in sheet weakened during the reported quarter due to higher import volumes and modest destocking.
The steel products unit delivered higher earnings on a sequential comparison basis on strong demand in non-residential construction markets.
Earnings in the raw materials unit were up sequentially in the first quarter on improved selling prices for raw materials at the end of the quarter.
Financial Position
At the end of the quarter, cash and cash equivalents rose roughly 51% year over year to $3,725.3 million. Long-term debt was $6,112.3 million, up around 16% year over year.
The company repurchased roughly 7 million shares of its common stock during the first quarter.
Outlook
Moving ahead, the company said that demand remains strong for steel and steel products in its end-use markets, and expects 2022 will be another year of strong earnings and cash flow.
Nucor envisions second-quarter 2022 to be the most profitable quarter in its history, surpassing the earlier record set in the fourth quarter of 2021. Earnings are projected to be driven by higher profitability in the steel products segment on the back of strong demand in non-residential construction markets.
The company also expects earnings in the steel mills segment to strengthen in the second quarter mainly due to higher profitability at its sheet and plate mills. The raw materials segment is also forecast to deliver higher profits, driven by relatively higher selling prices for raw materials.
Price Performance
Shares of Nucor have rallied 122.4% over a year compared with the industry’s 25.9% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 118% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 29.6% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 110% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 93% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 35.1% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.7%, on average. CMC has gained around 63% in a year.
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Nucor's (NUE) Earnings Top Estimates in Q1 on Higher Prices
Nucor Corporation (NUE - Free Report) recorded net earnings of $2,095.6 million or $7.67 per share in first-quarter 2022, rising from net earnings of $942.4 million or $3.10 per share in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of $7.35. First-quarter marked the most profitable quarter in the steel giant’s history.
The company logged net sales of $10,493.3 million, up around 50% year over year. The figure beat the Zacks Consensus Estimate of $10,290.1 million. The company benefited from a rally in sales prices in the quarter.
Nucor Corporation Price, Consensus and EPS Surprise
Nucor Corporation price-consensus-eps-surprise-chart | Nucor Corporation Quote
Operating Figures
Total steel mills shipments in the first quarter were 5,814,000 tons, down 11% year over year. Total tons shipped to outside customers were down 11% year over year to 6,394,000 tons. Average sales price jumped 68% year over year.
Steel mill operating rates were 77% in the quarter, down from 95% in the year-ago quarter.
Segment Highlights
Earnings of the company’s steel mills unit fell in the reported quarter on a sequential comparison basis, hurt by lower profitability of the sheet mills. The company saw strong end market demand. However, average realized selling prices in sheet weakened during the reported quarter due to higher import volumes and modest destocking.
The steel products unit delivered higher earnings on a sequential comparison basis on strong demand in non-residential construction markets.
Earnings in the raw materials unit were up sequentially in the first quarter on improved selling prices for raw materials at the end of the quarter.
Financial Position
At the end of the quarter, cash and cash equivalents rose roughly 51% year over year to $3,725.3 million. Long-term debt was $6,112.3 million, up around 16% year over year.
The company repurchased roughly 7 million shares of its common stock during the first quarter.
Outlook
Moving ahead, the company said that demand remains strong for steel and steel products in its end-use markets, and expects 2022 will be another year of strong earnings and cash flow.
Nucor envisions second-quarter 2022 to be the most profitable quarter in its history, surpassing the earlier record set in the fourth quarter of 2021. Earnings are projected to be driven by higher profitability in the steel products segment on the back of strong demand in non-residential construction markets.
The company also expects earnings in the steel mills segment to strengthen in the second quarter mainly due to higher profitability at its sheet and plate mills. The raw materials segment is also forecast to deliver higher profits, driven by relatively higher selling prices for raw materials.
Price Performance
Shares of Nucor have rallied 122.4% over a year compared with the industry’s 25.9% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 118% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 29.6% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 110% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 93% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 35.1% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.7%, on average. CMC has gained around 63% in a year.