## Nucor (NUE) Earnings Preview: What to Expect on October 21st
Get ready, investors! Nucor, a major player in the steel industry, is gearing up to announce its quarterly earnings on Monday, October 21st. All eyes will be on the company as investors anticipate news on whether it will surpass analysts’ estimates and provide positive guidance for the next quarter.
What to Watch For:
Analysts are currently predicting an earnings per share (EPS) of $1.49 for Nucor. While this is a key metric, investors will be keenly focused on the company’s overall performance and the outlook for the future. Stronger-than-expected earnings and upbeat guidance could trigger a positive reaction in the stock price.
Earnings History Snapshot:
Let’s take a look at Nucor’s recent earnings history and how the market reacted:
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Q2 2024:
EPS estimate of $2.35, actual EPS of $2.68, share price dropped by 1.0% the next day.*
Q1 2024:
EPS estimate of $3.65, actual EPS of $3.46, share price dropped by 9.0% the next day.*
Q4 2023:
EPS estimate of $2.87, actual EPS of $3.16, share price increased by 7.0% the next day.*
Q3 2023:
EPS estimate of $4.25, actual EPS of $4.57, share price increased by 5.0% the next day.Tracking Nucor’s Stock Performance:
As of October 17th, Nucor shares were trading at $158.09. Over the past 52 weeks, shares have seen a positive return of 12.16%. This upward trajectory suggests that long-term shareholders are likely optimistic heading into the earnings release.
Analyst Views on Nucor:
It’s crucial for investors to understand the prevailing market sentiment and expectations surrounding Nucor. Currently, analysts have given Nucor a total of 5 ratings, with the consensus rating being ‘Outperform.’ The average one-year price target is $170.0, indicating a potential upside of 7.53%.
Analyzing Analyst Ratings Among Peers:
To gain further insights, we’ll compare Nucor’s analyst ratings and price targets to those of its key industry peers: Steel Dynamics, Reliance, and United States Steel.
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Steel Dynamics:
Analysts have a Neutral consensus rating with an average one-year price target of $136.82, suggesting a potential downside of 13.45%.*
Reliance:
Analysts have an Outperform consensus rating with an average one-year price target of $325.0, implying a potential upside of 105.58%.*
United States Steel:
Analysts have a Buy consensus rating with an average one-year price target of $42.64, implying a potential downside of 73.03%.Peer Metrics Summary:
Let’s examine some key financial metrics for these companies, providing valuable insights into their performance and market positioning:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Nucor | Outperform | -15.18% | $1.19B | 3.10% |
| Steel Dynamics | Neutral | -6.28% | $774.84M | 3.49% |
| Reliance | Outperform | -6.11% | $1.09B | 3.44% |
| United States Steel | Buy | -17.77% | $489M | 1.62% |
Key Takeaway:
Nucor leads its peers in Gross Profit and Return on Equity. However, it falls behind in Revenue Growth.Delving into Nucor’s Background:
Nucor Corp is a prominent manufacturer of steel and steel products. The company also produces direct reduced iron for use in its steel mills. Its operations encompass international trading and sales companies that buy and sell steel products manufactured by Nucor and other companies. Nucor’s main business segments include steel mills, steel products, and raw materials, with the steel mills segment generating the most revenue. The steel mills segment encompasses carbon and alloy steel in sheet, bars, structural, and plate forms, as well as steel trading businesses, rebar distribution businesses, and Nucor’s equity method investments in NuMit and NJSM.
Nucor: Financial Performance Dissected:
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Market Capitalization:
Nucor’s market capitalization surpasses industry averages, signifying a dominant size relative to peers and a strong market position.*
Revenue Challenges:
Nucor’s revenue growth over three months has experienced difficulties. As of June 30th, 2024, the company saw a decline of approximately -15.18%. This indicates a decrease in top-line earnings, and the company’s revenue growth lags behind its industry peers.*
Net Margin:
Nucor boasts a net margin that exceeds industry benchmarks, reaching 7.95%. This reflects efficient cost management and robust financial health.*
Return on Equity (ROE):
Nucor’s ROE surpasses industry standards, emphasizing the company’s exceptional financial performance. With an impressive 3.1% ROE, the company demonstrates effective utilization of shareholder equity capital.*
Return on Assets (ROA):
Nucor’s ROA stands out, surpassing industry averages. With an impressive ROA of 1.89%, the company showcases effective utilization of assets and strong financial performance.*