Nucor Corporation NUE is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the U.S. While Nucor is gaining from strength in the automotive market, it remains exposed to a number of macroeconomic headwinds. The company is facing soft demand across energy, heavy equipment and agricultural markets.
Let’s have a quick look at this steel company’s third-quarter 2016 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Nucor for third quarter has been stable over the past one month. The company has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of 34.94%.
Earnings
Nucor’s adjusted earnings for the third quarter were 88 cents per share. Earnings missed the Zacks Consensus Estimate of 90 cents.
Revenues
Nucor reported revenues of $4,290.2 million, up roughly 1.5% year over year. That missed the Zacks Consensus Estimate of $4,539 million.
Key Stats/Developments to Note
Total steel mills shipments in the third quarter were 5,213,000 tons, up 1% year over year. Total tons shipped to outside customers were flat year over year at 5,889,000 tons. Average sales price in the quarter rose 2% year over year.
The company expects earnings in the fourth quarter to decrease sequentially mainly due to lower margins in the steel mills segment, with the most significant impact expected on the sheet mills.
Zacks Rank
Currently, Nucor has a Zacks Rank #4 (Sell).
Market Reaction
Nucor’s shares were inactive following the release. 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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