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Nucor (NUE) Down 6.1% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Nucor Corporation (NUE - Free Report) . Shares have lost about 6.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Nucor's Q1 Earnings Trail Estimates, Revenues Top
Nucor saw its profits surge year over year in the first quarter of 2017 on higher sales, but its earnings fell short of expectations.
The company logged a profit of $356.9 million or $1.11 per share for the first quarter, a four-fold jump from $87.6 million or $0.27 per share it registered a year ago. Earnings per share for the reported quarter, however, trailed the Zacks Consensus Estimate of $1.14.
Revenues climbed around 30% year over year to $4,815.2 million in the reported quarter. Sales comfortably beat the Zacks Consensus Estimate of $4,698 million.
Operating Stats
Total steel mills shipments in the first quarter were 6,147,000 tons, up 9% year over year. Total tons shipped to outside customers were up 7% year over year to 6,584,000 tons. Average sales price in the quarter were up 21% year over year.
Steel mill operating rates rose to 89% in the reported quarter from 80% a year ago.
Segment Highlights
Nucor saw increased profitability in its Steel Mills segment in the first quarter compared with the previous quarter on the back of improved performance of its sheet, bar and plate mills.
The performance of Nucor’s Raw Materials segment in the first quarter improved compared with the fourth due to improved performance of scrap processing segment and brokerage operations as well as in its DRI facility in Trinidad.
Nucor, however, saw reduced profitability in its Steel Products segment on a sequential comparison basis in the first quarter due to seasonality.
Financial Position
Nucor ended the quarter with cash and cash equivalents of around $1,658 million, down roughly 27%. Long-term debt was $3,739.9 million, down around 14% year over year.
Outlook
Moving ahead, Nucor expects earnings in second-quarter 2017 to increase on a sequential comparison basis.
The company envisions an improvement in performance in its Steel Mills segment in the second quarter compared with the first on improved metal margins at its sheet mills. Nucor also expects higher profitability in its Downstream Products segment in the second quarter on a sequential comparison basis as improving weather conditions are expected to benefit non-residential construction markets.
Moreover, the company expects performance of its Raw Materials segment to improve in the second quarter vis-à-vis the first on improved profitability of its DRI facilities.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower. In the past month, the consensus estimate has shifted by 8.3% due to these changes.
At this time, Nucor's stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and growth investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Nucor (NUE) Down 6.1% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Nucor Corporation (NUE - Free Report) . Shares have lost about 6.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Nucor's Q1 Earnings Trail Estimates, Revenues Top
Nucor saw its profits surge year over year in the first quarter of 2017 on higher sales, but its earnings fell short of expectations.
The company logged a profit of $356.9 million or $1.11 per share for the first quarter, a four-fold jump from $87.6 million or $0.27 per share it registered a year ago. Earnings per share for the reported quarter, however, trailed the Zacks Consensus Estimate of $1.14.
Revenues climbed around 30% year over year to $4,815.2 million in the reported quarter. Sales comfortably beat the Zacks Consensus Estimate of $4,698 million.
Operating Stats
Total steel mills shipments in the first quarter were 6,147,000 tons, up 9% year over year. Total tons shipped to outside customers were up 7% year over year to 6,584,000 tons. Average sales price in the quarter were up 21% year over year.
Steel mill operating rates rose to 89% in the reported quarter from 80% a year ago.
Segment Highlights
Nucor saw increased profitability in its Steel Mills segment in the first quarter compared with the previous quarter on the back of improved performance of its sheet, bar and plate mills.
The performance of Nucor’s Raw Materials segment in the first quarter improved compared with the fourth due to improved performance of scrap processing segment and brokerage operations as well as in its DRI facility in Trinidad.
Nucor, however, saw reduced profitability in its Steel Products segment on a sequential comparison basis in the first quarter due to seasonality.
Financial Position
Nucor ended the quarter with cash and cash equivalents of around $1,658 million, down roughly 27%. Long-term debt was $3,739.9 million, down around 14% year over year.
Outlook
Moving ahead, Nucor expects earnings in second-quarter 2017 to increase on a sequential comparison basis.
The company envisions an improvement in performance in its Steel Mills segment in the second quarter compared with the first on improved metal margins at its sheet mills. Nucor also expects higher profitability in its Downstream Products segment in the second quarter on a sequential comparison basis as improving weather conditions are expected to benefit non-residential construction markets.
Moreover, the company expects performance of its Raw Materials segment to improve in the second quarter vis-à-vis the first on improved profitability of its DRI facilities.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower. In the past month, the consensus estimate has shifted by 8.3% due to these changes.
Nucor Corporation Price and Consensus
Nucor Corporation Price and Consensus | Nucor Corporation Quote
VGM Scores
At this time, Nucor's stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and growth investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.