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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 10.8%, on average. It posted an earnings surprise of 16.8% in the last reported quarter. Strong performance in the steel mills unit is likely to have supported second-quarter performance. Its results are also likely to reflect the impact of improved selling prices.
Nucor’s shares are up 29.2% over a year, compared with the industry’s 45% rise.
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 second quarter. It anticipates second-quarter earnings in the range of $5.45-$5.55 per share.
The Zacks Consensus Estimate for second-quarter consolidated revenues for Nucor is currently pegged at $9,734 million, reflecting a year-over-year decline of 17.5%.
A Few Factors to Watch
Improved profitability in the company’s steel mills segment is expected to be aided its performance in the quarter to be reported. Volumes in this segment is likely to have been supported by healthy underlying demand in end markets. Our estimate for sales tons to outside customers for steel mills is pegged at 4,925,000 tons for the second quarter compared with 4,804,000 tons reported in the prior quarter.
Nucor, in June, said that it sees enhanced earnings performance in the steel mills segment in the second quarter compared with the previous quarter mainly due to margin expansion at its sheet mills. The company’s steel products segment is also projected to maintain strong performance, comparable to the first quarter of 2023.
The company also expects improved performance of its DRI facilities to drive profitability in the raw materials segment. It sees profits to be up sequentially for this segment.
Meanwhile, U.S. steel prices have rebounded this year after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil prices have recovered, driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
Sequentially higher selling prices are likely to have supported Nucor’s performance in the to-be-reported quarter. Our estimate for second-quarter average sales price per ton for the company’s steel mills unit stands at $1,088, suggesting a 5.1% sequential increase.
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 second quarter is currently pegged at $5.59. 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 #3.
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:
Agnico Eagle Mines Limited (AEM - Free Report) , which is scheduled to release earnings on Jul 26, has an Earnings ESP of +3.84% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 54 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Image: Bigstock
Nucor (NUE) to Report Q2 Earnings: What's in the Offing?
Nucor Corporation (NUE - Free Report) is set to release second-quarter 2023 results ahead of the bell on Jul 25.
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 10.8%, on average. It posted an earnings surprise of 16.8% in the last reported quarter. Strong performance in the steel mills unit is likely to have supported second-quarter performance. Its results are also likely to reflect the impact of improved selling prices.
Nucor’s shares are up 29.2% over a year, compared with the industry’s 45% rise.
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 second quarter. It anticipates second-quarter earnings in the range of $5.45-$5.55 per share.
The Zacks Consensus Estimate for second-quarter consolidated revenues for Nucor is currently pegged at $9,734 million, reflecting a year-over-year decline of 17.5%.
A Few Factors to Watch
Improved profitability in the company’s steel mills segment is expected to be aided its performance in the quarter to be reported. Volumes in this segment is likely to have been supported by healthy underlying demand in end markets. Our estimate for sales tons to outside customers for steel mills is pegged at 4,925,000 tons for the second quarter compared with 4,804,000 tons reported in the prior quarter.
Nucor, in June, said that it sees enhanced earnings performance in the steel mills segment in the second quarter compared with the previous quarter mainly due to margin expansion at its sheet mills. The company’s steel products segment is also projected to maintain strong performance, comparable to the first quarter of 2023.
The company also expects improved performance of its DRI facilities to drive profitability in the raw materials segment. It sees profits to be up sequentially for this segment.
Meanwhile, U.S. steel prices have rebounded this year after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil prices have recovered, driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
Sequentially higher selling prices are likely to have supported Nucor’s performance in the to-be-reported quarter. Our estimate for second-quarter average sales price per ton for the company’s steel mills unit stands at $1,088, suggesting a 5.1% sequential increase.
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 second quarter is currently pegged at $5.59. 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 #3.
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:
Agnico Eagle Mines Limited (AEM - Free Report) , which is scheduled to release earnings on Jul 26, has an Earnings ESP of +3.84% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 54 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.