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. The company’s strong balance sheet and healthy cash flow generation are expected to drive growth in the future.
Let’s have a quick look at this steel company’s first-quarter 2015 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Nucor for the first quarter has been stationary over the past week and month. The company has beaten the Zacks Consensus Estimate in all of the trailing 4 quarters with an average beat of 12.84%.
Earnings Top
Nucor delivered earnings of 21 cents per share. Earnings topped the Zacks Consensus Estimate of 14 cents.
Revenues Miss
Nucor reported revenues of $4,399.4 million, down 14% year over year. That missed the Zacks Consensus Estimate of $4,607 million.
Key Stats/Developments to Note
Total tons shipped to outside customers fell 9% year over year to 5,635,000. Average sales price declined 5% year over year.
Zacks Rank
Currently, Nucor has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.
Market Reaction
Nucor’s shares fell modestly 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!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment