North Carolina-based Nucor Corporation (NUE) is a leading producer of structural steel, steel bars, joists, decks, and cold-finished bars. With a market cap of $36 billion, Nucor operates through steel mills, steel products, and raw materials segments. The steel manufacturer is expected to announce its Q3 earnings after the market closes on Monday, Oct. 21.
Ahead of the event, analysts expect Nucor to report a profit of $1.39 per share, down 69.6% from $4.57 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on another occasion. Its EPS for the last reported quarter declined 53.9% year-over-year to $2.68 but exceeded the consensus estimates by 16%.
Looking ahead to fiscal 2024, analysts expect Nucor to report an EPS of $9.28, down 48.4% from $18.00 in fiscal 2023. However, in fiscal 2025, its EPS is expected to grow 26.4% year-over-year to $11.73.
NUE has dipped 12.3% on a YTD basis, substantially lagging behind the S&P 500 Index’s ($SPX) 19.7% gains and the Materials Select Sector SPDR Fund’s (XLB) 12.4% returns during the same time frame.
Shares of Nucor dipped 1.1% in the trading session after the release of its Q2 earnings on Jul. 22. The steel giant reported a 15.2% year-over-year drop in net sales, bringing the total down to $8.1 billion. It also experienced a drop in earnings in each of its three segments leading to a 7.4% net margin contraction to 8%. This resulted in a massive 55.8% drop in net earnings attributable to shareholders to $645.2 million. Despite these setbacks, the company’s ability to exceed Wall Street’s earnings estimates helped mitigate the impact on its share price.
For Q3, Nucor anticipated further declines in earnings across all segments. This is due to lower average selling prices, primarily in the steel mills and steel products segments.
The consensus opinion on the NUE stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 12 analysts covering the stock, seven recommend “Strong Buy,” one advises “Moderate Buy,” and four suggest a “Hold” rating.
The mean price target of $181.33 suggests a potential upside of 18.7% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
