Nucor Corporation (NUE) is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the U.S and operates in three divisions – the Steel Mills segment, the Steel Products segment and the Raw Materials segment.
While Nucor is still exposed to weak steel market fundamentals, it is seeing strength across end markets such as heavy equipment, automotive, general manufacturing and energy. Nucor’s direct reduced iron (DRI) facility in Louisiana, its largest project, came online in Dec 2013. Through this facility, the company expects to grow its sheet and SBQ (special bar quality) markets and gain meaningful competitive cost advantage for raw materials and energy.
Let’s have a quick look at this steel company’s fourth-quarter release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Nucor for the fourth quarter has been in a downward trend. Nucor has witnessed 8 downward estimate revisions in the past two months dragging down its consensus estimate 14% to 55 cents at present. However the company has beaten the Zacks Consensus Estimate in all of the trailing 4 quarters with an average beat of around 13.92%.
Earnings
Nucor delivered adjusted earnings of 54 cents per share. Earnings missed the Zacks Consensus Estimate of 55 cents.
Revenues
Nucor reported revenues of $5,003.8 million. This missed the Zacks Consensus Estimate of $5,453 million.
Key Stats/Developments to Note
Total tons shipped to outside customers in 2014 rose 7% from 2013 to 25,413,000. Average sales price in fourth quarter increased 1% year over year.
Zacks Rank
Currently, Nucor has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released.
Market Reaction
Nucor’s shares fell 1.9% in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Nucor’s earnings report!
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