Nucor Corporation ( NUE Quick Quote NUE - Free Report) is set to release fourth-quarter 2022 results ahead of the bell on Jan 26. The U.S. steel giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters. It has a trailing four-quarter earnings surprise of 3.9%, on average. It posted an earnings surprise of around 0.8% in the last reported quarter. The impacts of weaker prices and seasonally lower shipment volumes are likely to reflect on its fourth-quarter results. Nucor’s shares are up 61.4% over a year, compared with the industry’s 22% rise.
Image Source: Zacks Investment Research Let’s see how things are shaping up for this announcement. Zacks Model
Our proven model predicts 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 earning beat. Earnings ESP: Earnings ESP for Nucor is +3.29%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $4.18. 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 #1. What do the Estimates Say?
Nucor, last month, issued its earnings guidance for the fourth quarter. It anticipates fourth-quarter earnings to be between $4.25 and $4.35 per share.
The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Nucor is currently pegged at $7,910.3 million, reflecting a year-over-year decline of 23.7%. The Zacks Consensus Estimate for fourth-quarter average sales price per ton for the company’s steel mills unit stands at $1,077, suggesting a 27.1% year-over-year decline and a 16.9% sequential decrease. The same for total steel mill shipments is pegged at 4,677,000 tons, reflecting a roughly 20.3% sequential decline. A Few Factors to Watch
The company’s fourth-quarter results are likely to reflect weaker steel prices. Profitability in its steel mills and steel products segments are expected to have been dented by lower selling prices and seasonally lower shipment volumes.
Nucor, in December, said that it expects earnings to decline significantly in the steel mills segment on a sequential comparison basis in the fourth quarter. The expected decline is due to lower average selling prices, margin contraction and lower shipment volumes. The biggest decline in profitability has been forecast at its sheet mills. The company expects shipments for its bar mills to be lower in the fourth quarter due to seasonal factors with customers lowering inventories as year-end approaches. Nucor also expects earnings for its steel products segment to decline modestly on a sequential comparison basis on reduced selling prices and volumes. Earnings for the raw materials unit are forecast to decline significantly in the fourth quarter compared with the third quarter due to lower profitability of the company’s DRI facilities and reduced selling prices for raw materials. Planned outages impacted the DRI facilities during the fourth quarter. U.S. steel prices tumbled after surging to roughly $1,500 per short ton in April 2022 due to supply concerns stemming from the Russia-Ukraine war. The benchmark hot-rolled coil ("HRC") prices cratered to near the $600 per short ton level in November 2022. The downward drift partly reflects weaker demand. Fears of a recession have also impacted prices. Lower selling prices are likely to have weighed on Nucor’s steel mills segment in the to-be-reported quarter. Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines Limited ( AEM Quick Quote AEM - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +0.84% and sports a Zacks Rank #1. You can see . the complete list of today’s Zacks #1 Rank stocks here The consensus estimate for Agnico Eagle’s fourth-quarter earnings has been stable in the past 60 days. The Zacks Consensus Estimate for AEM’s earnings for the quarter is pegged at 40 cents. Freeport-McMoRan Inc. ( FCX Quick Quote FCX - Free Report) , scheduled to release earnings on Jan 25, has an Earnings ESP of +6.96% and currently carries a Zacks Rank #2. The Zacks Consensus Estimate for Freeport’s fourth-quarter earnings has been revised 11.1% upward in the past 60 days. The consensus estimate for FCX’s earnings for the fourth quarter is currently pegged at 40 cents. Steel Dynamics, Inc. ( STLD Quick Quote STLD - Free Report) , scheduled to release earnings on Jan 25, has an Earnings ESP of +14.55%. The Zacks Consensus Estimate for Steel Dynamics’ fourth-quarter earnings is currently pegged at $3.60. STLD currently carries a Zacks Rank #1. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.