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Nucor (NUE) Up 2.2% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Nucor (NUE - Free Report) . Shares have added about 2.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nucor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Nucor's Earnings and Revenues Top Estimates in Q4
Nucor 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 roughly $7.7 billion, down around 11.7% year over year. The figure topped the Zacks Consensus Estimate of $7.56 billion.
Earnings declined in the fourth quarter primarily due to lower prices.
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 roughly $6.38 billion at the end of the quarter, up 49% year over year. The long-term debt was around $6.65 billion, 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 15.49% due to these changes.
VGM Scores
Currently, Nucor has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nucor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Nucor is part of the Zacks Steel - Producers industry. Over the past month, Steel Dynamics (STLD - Free Report) , a stock from the same industry, has gained 8.6%. The company reported its results for the quarter ended December 2023 more than a month ago.
Steel Dynamics reported revenues of $4.23 billion in the last reported quarter, representing a year-over-year change of -12.3%. EPS of $2.61 for the same period compares with $4.37 a year ago.
Steel Dynamics is expected to post earnings of $3.48 per share for the current quarter, representing a year-over-year change of -13.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +9.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Steel Dynamics. Also, the stock has a VGM Score of B.
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Nucor (NUE) Up 2.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Nucor (NUE - Free Report) . Shares have added about 2.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nucor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Nucor's Earnings and Revenues Top Estimates in Q4
Nucor 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 roughly $7.7 billion, down around 11.7% year over year. The figure topped the Zacks Consensus Estimate of $7.56 billion.
Earnings declined in the fourth quarter primarily due to lower prices.
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 roughly $6.38 billion at the end of the quarter, up 49% year over year. The long-term debt was around $6.65 billion, 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 15.49% due to these changes.
VGM Scores
Currently, Nucor has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nucor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Nucor is part of the Zacks Steel - Producers industry. Over the past month, Steel Dynamics (STLD - Free Report) , a stock from the same industry, has gained 8.6%. The company reported its results for the quarter ended December 2023 more than a month ago.
Steel Dynamics reported revenues of $4.23 billion in the last reported quarter, representing a year-over-year change of -12.3%. EPS of $2.61 for the same period compares with $4.37 a year ago.
Steel Dynamics is expected to post earnings of $3.48 per share for the current quarter, representing a year-over-year change of -13.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +9.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Steel Dynamics. Also, the stock has a VGM Score of B.