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Nucor's (NUE) Earnings and Revenues Surpass Estimates in Q2
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Nucor Corporation (NUE - Free Report) registered net earnings of $1,506.9 million or $5.04 per share in second-quarter 2021, up from $108.9 million or 36 cents in the year-ago quarter. Notably, second-quarter marked the highest quarterly earnings in the steel giant’s history. Earnings per share topped the Zacks Consensus Estimate of $4.81.
The company recorded net sales of $8,789.2 million, up around 103% year over year. The figure also surpassed the Zacks Consensus Estimate of $8,311.9 million.
Nucor Corporation Price, Consensus and EPS Surprise
Total steel mills shipments in the second quarter were 6,734,000 tons, up 41% year over year. Total tons shipped to outside customers were up 37% year over year to 7,482,000 tons. Moreover, average sales price rose 49% year over year.
Steel mill operating rates were 97% in the second quarter, up from 68% in the year-ago quarter.
Segment Highlights
Earnings of the company’s steel mills unit improved significantly in the reported quarter on a sequential comparison basis, driven by a significant increase in profitability of sheet and plate mills.
The steel products unit also had another strong quarter with profitability rising on a sequential comparison basis.
However, earnings in the raw materials unit declined sequentially, hurt by higher raw material input costs and an impairment charge.
Financial Position
At the end of the quarter, cash and cash equivalents fell roughly 2% year over year to $2,722.7 million. Long-term debt was $5,275.5 million, essentially flat year over year.
The company repurchased roughly 6.8 million shares of its common stock during the quarter.
Outlook
Moving ahead, Nucor expects third-quarter earnings to be the highest quarterly earnings in its history, exceeding the record-level set in the second quarter. Earnings are expected to be mainly driven by higher pricing and margins in the steel mills segment.
The company also sees higher profitability in the steel mills segment with the biggest increase at sheet mills.
Earnings in steel products and raw materials segments are expected to rise sequentially in the third quarter.
Price Performance
Shares of Nucor have rallied 118.1% over a year compared with the industry’s 123.8% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nucor currently sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Nucor's (NUE) Earnings and Revenues Surpass Estimates in Q2
Nucor Corporation (NUE - Free Report) registered net earnings of $1,506.9 million or $5.04 per share in second-quarter 2021, up from $108.9 million or 36 cents in the year-ago quarter. Notably, second-quarter marked the highest quarterly earnings in the steel giant’s history. Earnings per share topped the Zacks Consensus Estimate of $4.81.
The company recorded net sales of $8,789.2 million, up around 103% year over year. The figure also surpassed the Zacks Consensus Estimate of $8,311.9 million.
Nucor Corporation Price, Consensus and EPS Surprise
Nucor Corporation price-consensus-eps-surprise-chart | Nucor Corporation Quote
Operating Figures
Total steel mills shipments in the second quarter were 6,734,000 tons, up 41% year over year. Total tons shipped to outside customers were up 37% year over year to 7,482,000 tons. Moreover, average sales price rose 49% year over year.
Steel mill operating rates were 97% in the second quarter, up from 68% in the year-ago quarter.
Segment Highlights
Earnings of the company’s steel mills unit improved significantly in the reported quarter on a sequential comparison basis, driven by a significant increase in profitability of sheet and plate mills.
The steel products unit also had another strong quarter with profitability rising on a sequential comparison basis.
However, earnings in the raw materials unit declined sequentially, hurt by higher raw material input costs and an impairment charge.
Financial Position
At the end of the quarter, cash and cash equivalents fell roughly 2% year over year to $2,722.7 million. Long-term debt was $5,275.5 million, essentially flat year over year.
The company repurchased roughly 6.8 million shares of its common stock during the quarter.
Outlook
Moving ahead, Nucor expects third-quarter earnings to be the highest quarterly earnings in its history, exceeding the record-level set in the second quarter. Earnings are expected to be mainly driven by higher pricing and margins in the steel mills segment.
The company also sees higher profitability in the steel mills segment with the biggest increase at sheet mills.
Earnings in steel products and raw materials segments are expected to rise sequentially in the third quarter.
Price Performance
Shares of Nucor have rallied 118.1% over a year compared with the industry’s 123.8% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nucor currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Dow Inc. (DOW - Free Report) , ArcelorMittal (MT - Free Report) and Cabot Corporation (CBT - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has a projected earnings growth rate of 359.6% for the current year. The company’s shares have surged around 40% in a year.
ArcelorMittal has an expected earnings growth rate of 1,484.4% for the current year. The company’s shares have shot up around 174% in the past year.
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have gained roughly 36% in the past year.