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Nucor (NUE) Expects Steel Mills Growth to Boost Q2 Earnings
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Nucor Corporation (NUE - Free Report) provided its earnings guidance for the second quarter of 2023. The steel giant expects earnings per share to be within the range of $5.45-$5.55 per share. This forecast shows an improvement from the first quarter of 2023 when net earnings totaled $4.45 per share, while it suggests a decline from the year-ago net earnings of $9.67 per share.
Nucor foresees enhanced earnings performance in its steel mills segment in the second quarter of 2023 compared with the previous quarter. This improvement is mainly attributed to margin expansion at its sheet mills. Similarly, the steel products segment is expected to maintain strong performance, comparable to the first quarter of 2023. Additionally, the raw materials segment is projected to experience a sequential rise in profitability in the second quarter of 2023, driven by the improved performance of the company’s DRI facilities.
As part of its financial activities, Nucor has undertaken share repurchases during the second quarter. Around 3.1 million shares have been repurchased at an average price of $147.03 per share. Year to date, the company has repurchased around 5.8 million shares at an average price of $151.41 per share. In total, Nucor has returned more than $1.13 billion to its stockholders through a combination of share repurchases and dividend payments so far this year.
Nucor has gained 32.6% in the past year, compared with the industry's 29.9% rise in the same period.
Image Source: Zacks Investment Research
In the first quarter of 2023, the company reported growth in steel mills shipments, with a 4% increase year over year. Shipments to external customers also rose 1%. However, average sales prices declined in the quarter, falling 18% year over year and 11% sequentially. The steel mills unit saw increased earnings due to higher volumes and improved margins, while the steel products division reported lower earnings due to reduced realized prices. The raw materials segment showed improved earnings, driven by higher volumes in DRI facilities and scrap recycling. Nucor's cash and cash equivalents rose 2% but long-term debt increased around 8%. The company repurchased about 2.7 million shares of its common stock during the quarter.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings has been pegged at 53 cents per share, indicating year-over-year growth of 112.5%. The company’s shares have gained around 6.1% over the past year. FSTR beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 140.5%, on average
The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It delivered a trailing four-quarter earnings surprise of roughly 13.64%, on average. Shares of KOP have gained 55.9% in a year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 4.4% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 6.9%. The company’s shares have gained 29.5% in the past year.
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Nucor (NUE) Expects Steel Mills Growth to Boost Q2 Earnings
Nucor Corporation (NUE - Free Report) provided its earnings guidance for the second quarter of 2023. The steel giant expects earnings per share to be within the range of $5.45-$5.55 per share. This forecast shows an improvement from the first quarter of 2023 when net earnings totaled $4.45 per share, while it suggests a decline from the year-ago net earnings of $9.67 per share.
Nucor foresees enhanced earnings performance in its steel mills segment in the second quarter of 2023 compared with the previous quarter. This improvement is mainly attributed to margin expansion at its sheet mills. Similarly, the steel products segment is expected to maintain strong performance, comparable to the first quarter of 2023. Additionally, the raw materials segment is projected to experience a sequential rise in profitability in the second quarter of 2023, driven by the improved performance of the company’s DRI facilities.
As part of its financial activities, Nucor has undertaken share repurchases during the second quarter. Around 3.1 million shares have been repurchased at an average price of $147.03 per share. Year to date, the company has repurchased around 5.8 million shares at an average price of $151.41 per share. In total, Nucor has returned more than $1.13 billion to its stockholders through a combination of share repurchases and dividend payments so far this year.
Nucor has gained 32.6% in the past year, compared with the industry's 29.9% rise in the same period.
Image Source: Zacks Investment Research
In the first quarter of 2023, the company reported growth in steel mills shipments, with a 4% increase year over year. Shipments to external customers also rose 1%. However, average sales prices declined in the quarter, falling 18% year over year and 11% sequentially. The steel mills unit saw increased earnings due to higher volumes and improved margins, while the steel products division reported lower earnings due to reduced realized prices. The raw materials segment showed improved earnings, driven by higher volumes in DRI facilities and scrap recycling. Nucor's cash and cash equivalents rose 2% but long-term debt increased around 8%. The company repurchased about 2.7 million shares of its common stock during the quarter.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include L.B. Foster Company (FSTR - Free Report) , carrying a Zacks Rank #1 (Strong Buy), and Koppers Holdings Inc. (KOP - Free Report) and Linde Plc (LIN - Free Report) , carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings has been pegged at 53 cents per share, indicating year-over-year growth of 112.5%. The company’s shares have gained around 6.1% over the past year. FSTR beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 140.5%, on average
The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It delivered a trailing four-quarter earnings surprise of roughly 13.64%, on average. Shares of KOP have gained 55.9% in a year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 4.4% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 6.9%. The company’s shares have gained 29.5% in the past year.