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Nucor's (NUE) Q2 Earnings and Revenues Top on Higher Prices
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Nucor Corporation (NUE - Free Report) recorded net earnings of $2,561.2 million or $9.67 per share in second-quarter 2022, rising from net earnings of $1,506.9 million or $5.04 per share in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of $8.91. Notably, second-quarter earnings per share marked a new record.
The company logged net sales of $11,794.5 million, up around 34% year over year. The figure beat the Zacks Consensus Estimate of $11,470.6 million. The company benefited from higher sales prices in the quarter.
Nucor Corporation Price, Consensus and EPS Surprise
Total steel mills shipments in the second quarter were 6,448,000 tons, down 4% year over year. Total tons shipped to outside customers were down 7% year over year to 6,977,000 tons. Average sales price climbed 44% year over year and also rose 3% sequentially.
Steel mill operating rates were 85% in the quarter, down from 97% in the year-ago quarter.
Segment Highlights
Earnings of the company’s steel mills unit strengthened in the reported quarter driven by higher profitability at the company’s bar and plate mills.
The steel products unit delivered higher profitability on strong demand in non-residential construction markets.
Earnings in the raw materials unit were up in the second quarter on relatively higher selling prices for both direct reduced iron (DRI) and scrap.
Financial Position
At the end of the quarter, cash and cash equivalents fell roughly 26% year over year to $2,002.7 million. Long-term debt was $6,621.7 million, up around 25% year over year.
The company repurchased roughly 5.1 million shares of its common stock during the second quarter.
Outlook
Moving ahead, the company said that it is seeing stable demand across the major end-use markets it serves. It envisions another quarter of strong profitability in the third quarter and believes that 2022 will be the most profitable year in its history.
Nucor expects earnings in the steel mills segment to be sequentially lower in the third quarter due to reduced expected shipment volumes and average selling prices, especially at sheet and plate mills. The steel products segment is projected to have another strong quarter with earnings roughly in-line with the second quarter. The company also sees raw materials segment earnings to improve in the third quarter driven by higher realized pricing at its DRI facilities.
Price Performance
Shares of Nucor have gained 25.5% over a year compared with the industry’s 20.3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Nucor currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 17.8% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 22% in a year.
Albemarle has a projected earnings growth rate of 239.1% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 20.5% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 14% in a year. The company flaunts a Zacks Rank #2 (Buy).
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Nucor's (NUE) Q2 Earnings and Revenues Top on Higher Prices
Nucor Corporation (NUE - Free Report) recorded net earnings of $2,561.2 million or $9.67 per share in second-quarter 2022, rising from net earnings of $1,506.9 million or $5.04 per share in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of $8.91. Notably, second-quarter earnings per share marked a new record.
The company logged net sales of $11,794.5 million, up around 34% year over year. The figure beat the Zacks Consensus Estimate of $11,470.6 million. The company benefited from higher 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 second quarter were 6,448,000 tons, down 4% year over year. Total tons shipped to outside customers were down 7% year over year to 6,977,000 tons. Average sales price climbed 44% year over year and also rose 3% sequentially.
Steel mill operating rates were 85% in the quarter, down from 97% in the year-ago quarter.
Segment Highlights
Earnings of the company’s steel mills unit strengthened in the reported quarter driven by higher profitability at the company’s bar and plate mills.
The steel products unit delivered higher profitability on strong demand in non-residential construction markets.
Earnings in the raw materials unit were up in the second quarter on relatively higher selling prices for both direct reduced iron (DRI) and scrap.
Financial Position
At the end of the quarter, cash and cash equivalents fell roughly 26% year over year to $2,002.7 million. Long-term debt was $6,621.7 million, up around 25% year over year.
The company repurchased roughly 5.1 million shares of its common stock during the second quarter.
Outlook
Moving ahead, the company said that it is seeing stable demand across the major end-use markets it serves. It envisions another quarter of strong profitability in the third quarter and believes that 2022 will be the most profitable year in its history.
Nucor expects earnings in the steel mills segment to be sequentially lower in the third quarter due to reduced expected shipment volumes and average selling prices, especially at sheet and plate mills. The steel products segment is projected to have another strong quarter with earnings roughly in-line with the second quarter. The company also sees raw materials segment earnings to improve in the third quarter driven by higher realized pricing at its DRI facilities.
Price Performance
Shares of Nucor have gained 25.5% over a year compared with the industry’s 20.3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Nucor currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 17.8% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 22% in a year.
Albemarle has a projected earnings growth rate of 239.1% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 20.5% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 14% in a year. The company flaunts a Zacks Rank #2 (Buy).