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The U.S. steel giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters. It has a trailing four-quarter earnings surprise of 7.7%, on average. It posted an earnings surprise of around 17% in the last reported quarter. Higher volumes are likely to have supported first-quarter performance. However, the impacts of weaker selling prices are likely to reflect on its results.
Nucor’s shares are down 14% over a year compared with the industry’s 5.1% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
Nucor, last month, issued its earnings guidance for the first quarter. It anticipates first-quarter earnings in the range of $3.70-$3.80 per share.
The Zacks Consensus Estimate for first-quarter consolidated revenues for Nucor is currently pegged at $8,169 million, reflecting a year-over-year decline of 22.2%.
The Zacks Consensus Estimate for first-quarter average sales price per ton for the company’s steel mills unit stands at $1,091, suggesting a 24% year-over-year decline and a 1% sequential decrease. The same for sales tons to outside customers for steel mills is pegged at 4,539,000 tons, reflecting a roughly 11.6% sequential rise and flat year over year.
A Few Factors to Watch
Profitability in the company’s steel mills segment, in the first quarter, is expected to be aided by improved shipment volumes. However, its results are likely to reflect the impact of weaker selling prices.
Nucor, in March, said that it expects profitability from its steel mills to be up sequentially on the back of higher margins and volumes, mainly resulting from an improvement in operations at its sheet mills. Earnings from the company’s steel products segment are expected to be strong but lower than the fourth quarter due to lower realized pricing and weak construction activity. However, profits are expected to be higher year over year.
Higher volumes at DRI facilities, scrap recycling and brokerage operations are expected to drive profitability in the raw materials segment. The company expects profits to be up sequentially for this segment.
Meanwhile, U.S. steel prices rebounded in the first quarter after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil ("HRC") prices strengthened during the March quarter driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
Notwithstanding the recovery in U.S. steel prices, lower selling prices are likely to have weighed on Nucor’s performance in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for Nucor this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Nucor is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $3.81. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nucor currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for U.S. Steel’s first-quarter earnings has been revised 124.6% upward in the past 60 days. The Zacks Consensus Estimate for X’s earnings for the quarter is pegged at 51 cents.
Methanex Corporation (MEOH - Free Report) , slated to release earnings on Apr 26, has an Earnings ESP of +7.22%.
The consensus estimate for Methanex’s earnings for the first quarter is currently pegged at 91 cents. MEOH currently carries a Zacks Rank #1.
Ternium S.A. (TX - Free Report) , scheduled to release earnings on Apr 25, has an Earnings ESP of +10.85% and currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for TX’s first-quarter earnings has been revised 58% upward in the past 60 days. The consensus estimate for TX’s earnings for the first quarter is currently pegged at 98 cents.
Image: Bigstock
Nucor (NUE) Gears Up for Q1 Earnings: What's in the Cards?
Nucor Corporation (NUE - Free Report) is set to release first-quarter 2023 results ahead of the bell on Apr 20.
The U.S. steel giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters. It has a trailing four-quarter earnings surprise of 7.7%, on average. It posted an earnings surprise of around 17% in the last reported quarter. Higher volumes are likely to have supported first-quarter performance. However, the impacts of weaker selling prices are likely to reflect on its results.
Nucor’s shares are down 14% over a year compared with the industry’s 5.1% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
Nucor, last month, issued its earnings guidance for the first quarter. It anticipates first-quarter earnings in the range of $3.70-$3.80 per share.
The Zacks Consensus Estimate for first-quarter consolidated revenues for Nucor is currently pegged at $8,169 million, reflecting a year-over-year decline of 22.2%.
The Zacks Consensus Estimate for first-quarter average sales price per ton for the company’s steel mills unit stands at $1,091, suggesting a 24% year-over-year decline and a 1% sequential decrease. The same for sales tons to outside customers for steel mills is pegged at 4,539,000 tons, reflecting a roughly 11.6% sequential rise and flat year over year.
A Few Factors to Watch
Profitability in the company’s steel mills segment, in the first quarter, is expected to be aided by improved shipment volumes. However, its results are likely to reflect the impact of weaker selling prices.
Nucor, in March, said that it expects profitability from its steel mills to be up sequentially on the back of higher margins and volumes, mainly resulting from an improvement in operations at its sheet mills. Earnings from the company’s steel products segment are expected to be strong but lower than the fourth quarter due to lower realized pricing and weak construction activity. However, profits are expected to be higher year over year.
Higher volumes at DRI facilities, scrap recycling and brokerage operations are expected to drive profitability in the raw materials segment. The company expects profits to be up sequentially for this segment.
Meanwhile, U.S. steel prices rebounded in the first quarter after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil ("HRC") prices strengthened during the March quarter driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
Notwithstanding the recovery in U.S. steel prices, lower selling prices are likely to have weighed on Nucor’s performance in the to-be-reported quarter.
Nucor Corporation Price and EPS Surprise
Nucor Corporation price-eps-surprise | Nucor Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Nucor this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Nucor is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $3.81. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nucor currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
United States Steel Corporation (X - Free Report) , slated to release earnings on Apr 27, has an Earnings ESP of +25.49% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for U.S. Steel’s first-quarter earnings has been revised 124.6% upward in the past 60 days. The Zacks Consensus Estimate for X’s earnings for the quarter is pegged at 51 cents.
Methanex Corporation (MEOH - Free Report) , slated to release earnings on Apr 26, has an Earnings ESP of +7.22%.
The consensus estimate for Methanex’s earnings for the first quarter is currently pegged at 91 cents. MEOH currently carries a Zacks Rank #1.
Ternium S.A. (TX - Free Report) , scheduled to release earnings on Apr 25, has an Earnings ESP of +10.85% and currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for TX’s first-quarter earnings has been revised 58% upward in the past 60 days. The consensus estimate for TX’s earnings for the first quarter is currently pegged at 98 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.