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Nucor's (NUE) Earnings and Revenues Top Estimates in Q4
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Nucor Corporation (NUE - Free Report) reported earnings of $3.16 per share in fourth-quarter 2023, down from earnings of $4.89 in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of $2.83.
The company recorded net sales of $7,704.5 million, down around 11.7% year over year. The figure topped the Zacks Consensus Estimate of $7,563.8 million.
Earnings declined in the fourth quarter primarily due to lower prices.
Nucor Corporation Price, Consensus and EPS Surprise
Total sales tons to outside customers for steel mills in the fourth quarter were 5,513,000 tons, up 8% year over year. The figure beat our estimate of 4,525,000 tons.
The average sales price for steel mills was $1,015 per ton, down 15% year over year and around 8% sequentially and 15%. The metric is ahead of our estimate of $995 per ton.
Overall operating rates at the company’s steel mills fell to 74% in the fourth quarter of 2023 compared with 77% in the third quarter of 2023. It also compares to 70% in the fourth quarter of 2022.
Segment Highlights
Earnings of the company’s steel mills unit fell 33% sequentially in the reported quarter on lower pricing.
Earnings in the steel products division were lower by 19% sequentially in the fourth quarter due to reduced prices and a decline in shipments.
The raw materials segment’s earnings were down 120% sequentially on lower pricing and outages at DRI facilities.
Financial Position
Cash and cash equivalents were $6,383.3 million at the end of the quarter, up 49% year over year. The long-term debt was $6,648.9 million, flat year over year.
The company repurchased around 1 million shares of its common stock at an average price of $177.18 per share during the quarter.
FY23 Results
In 2023, Nucor reported net earnings of $4.52 billion or $18 per share. This contrasts with $7.61 billion in net earnings, translating to $28.79 per share in 2022.
Regarding net sales, Nucor recorded $34.71 billion for the full year 2023, down 16% from $41.51 billion reported in 2022. Total tons shipped to external customers in 2023 amounted to approximately 25,205,000 tons, down 1% from 2022 levels. The average sales price per ton in 2023 recorded a 15% fall from 2022 levels.
Outlook
Nucor anticipates a rise in earnings for the first quarter of 2024 compared with fourth-quarter 2023 figure. This upside can be attributed to an expected increase in earnings in the steel mills segment, driven by increased average selling prices and volumes, notably in sheet mills.
Earnings in the steel products segment are forecast to decline during the same period due to reduced average selling prices. However, Nucor expects a sequential rise in earnings within the raw materials segment for the first quarter of 2024, primarily stemming from improved profitability in DRI facilities alongside enhanced performance in scrap processing and brokerage operations.
Price Performance
Shares of Nucor have moved up 4.5% in a year compared with the industry’s 5.3% rise.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 68.1% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 34.6% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 43.3% in the past year.
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Nucor's (NUE) Earnings and Revenues Top Estimates in Q4
Nucor Corporation (NUE - Free Report) reported earnings of $3.16 per share in fourth-quarter 2023, down from earnings of $4.89 in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of $2.83.
The company recorded net sales of $7,704.5 million, down around 11.7% year over year. The figure topped the Zacks Consensus Estimate of $7,563.8 million.
Earnings declined in the fourth quarter primarily due to lower prices.
Nucor Corporation Price, Consensus and EPS Surprise
Nucor Corporation price-consensus-eps-surprise-chart | Nucor Corporation Quote
Operating Figures
Total sales tons to outside customers for steel mills in the fourth quarter were 5,513,000 tons, up 8% year over year. The figure beat our estimate of 4,525,000 tons.
The average sales price for steel mills was $1,015 per ton, down 15% year over year and around 8% sequentially and 15%. The metric is ahead of our estimate of $995 per ton.
Overall operating rates at the company’s steel mills fell to 74% in the fourth quarter of 2023 compared with 77% in the third quarter of 2023. It also compares to 70% in the fourth quarter of 2022.
Segment Highlights
Earnings of the company’s steel mills unit fell 33% sequentially in the reported quarter on lower pricing.
Earnings in the steel products division were lower by 19% sequentially in the fourth quarter due to reduced prices and a decline in shipments.
The raw materials segment’s earnings were down 120% sequentially on lower pricing and outages at DRI facilities.
Financial Position
Cash and cash equivalents were $6,383.3 million at the end of the quarter, up 49% year over year. The long-term debt was $6,648.9 million, flat year over year.
The company repurchased around 1 million shares of its common stock at an average price of $177.18 per share during the quarter.
FY23 Results
In 2023, Nucor reported net earnings of $4.52 billion or $18 per share. This contrasts with $7.61 billion in net earnings, translating to $28.79 per share in 2022.
Regarding net sales, Nucor recorded $34.71 billion for the full year 2023, down 16% from $41.51 billion reported in 2022. Total tons shipped to external customers in 2023 amounted to approximately 25,205,000 tons, down 1% from 2022 levels. The average sales price per ton in 2023 recorded a 15% fall from 2022 levels.
Outlook
Nucor anticipates a rise in earnings for the first quarter of 2024 compared with fourth-quarter 2023 figure. This upside can be attributed to an expected increase in earnings in the steel mills segment, driven by increased average selling prices and volumes, notably in sheet mills.
Earnings in the steel products segment are forecast to decline during the same period due to reduced average selling prices. However, Nucor expects a sequential rise in earnings within the raw materials segment for the first quarter of 2024, primarily stemming from improved profitability in DRI facilities alongside enhanced performance in scrap processing and brokerage operations.
Price Performance
Shares of Nucor have moved up 4.5% in a year compared with the industry’s 5.3% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Cameco Corporation (CCJ - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and The Andersons (ANDE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 68.1% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 34.6% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 43.3% in the past year.