Back to top

Image: Bigstock

Nucor Projects Q1 Earnings to Decline on Lower Selling Prices

Read MoreHide Full Article

Nucor Corporation (NUE - Free Report) expects first-quarter 2025 earnings to be in the range of 45-55 cents per share. Adjusted earnings are forecast to be between 50 and 60 cents per share. Nucor reported earnings of $1.22 per share in the prior quarter and $3.46 per share for the first quarter of 2024.

The non-adjusted earnings guidance includes one-time non-cash charges of approximately $16 million, or 5 cents per share, for the closure of two facilities in the steel products segment. Also, higher corporate, administrative and tax impacts are expected in the first quarter of 2025 than recognized in the prior quarter.

The primary reason for the predicted decline in profitability in the first quarter is weaker selling prices. The steel products segment is projected to see sequentially lower earnings due to lower average selling prices. The company expects profitability in the steel mills segment to be in line with the fourth quarter of 2024. The raw materials segment's earnings are predicted to decline due to lower margins at DRI facilities.

During the first quarter to date, Nucor repurchased roughly 2.3 million shares at an average price of $133.17 per share. NUE has returned approximately $428 million to shareholders through share repurchases and dividend payments so far in the quarter.

Shares of Nucor have lost 34.1% in a year compared with the industry’s 19.3% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

NUE’s Rank & Key Picks

NUE currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Ingevity Corporation (NGVT - Free Report) , Axalta Coating Systems (AXTA - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . 

Ingevity currently carries a Zacks Rank #1 (Strong Buy). NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 202.9%. You can see the complete list of today's Zacks #1 Rank stocks here.

Axalta, a Zacks Rank #1 stock, surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 16.28%. AXTA’s shares have gained 1.8% over the past year. 

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.95 per share. CRS, a Zacks Rank #2 (Buy) stock, beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 15.7%. Its shares have soared 174% in the past year.



 

Published in