Nucor Corp. (NUE)

Nucor Corp (NUE) stock plummeted by 8.87% following its first-quarter 2024 earnings report. The company reported declining earnings and weak guidance for Q2 2024, which disappointed investors.

• Earning results: The company reported earnings of $3.46 per share, down from $4.45 in the year-ago quarter, missing the Zacks Consensus Estimate of $3.62. Net sales were $8,137.1 million, a decrease of around 7% year over year, but slightly above the Zacks Consensus Estimate of $8,030.1 million.
• Operating Metrics: Total sales tons to outside customers for steel mills in the first quarter were 4,676,000 tons, down 3% year over year, but slightly above estimates. The average sales price for steel mills was $1,108 per ton, below estimates. Overall operating rates at the company’s steel mills rose to 82% in the first quarter of 2024 from 79% in the year-ago quarter.
• Financial Position: Cash and cash equivalents were $4,557.8 million at the end of the quarter, up around 20% year over year. Long-term debt was $6,647.6 million, essentially flat year over year. Nucor repurchased around 5.5 million shares of its common stock at an average price of $180.79 per share during the quarter.
• Outlook: Looking ahead, Nucor anticipates a decline in earnings in the second quarter of 2024 compared with the prior quarter. This is expected to be driven by lower earnings in the steel mills segment, primarily due to reduced average selling prices partly offset by slightly higher volumes. Earnings in the steel products segment are forecast to decline moderately in the second quarter due to reduced average selling prices, partly offset by higher volumes. However, Nucor expects a sequential rise in earnings in the raw materials segment for the first quarter of 2024 due to higher profitability of its direct reduced iron facilities and scrap processing operations.

Nucor Corporation (NUE) fell by 6.11% to $155.42 after the company released its Q3 guidance. The company predicted Q3 2023 earnings between $4.10 and $4.20 per share, marking a decline from the prior quarter and the same period in 2022, mainly due to weaker performance in the steel mills and steel products segments, primarily driven by reduced pricing and volumes. Additionally, the raw materials segment was expected to report lower earnings due to margin compression in DRI facilities and scrap processing operations.

https://finance.yahoo.com/news/nucor-nue-issues-q3-guidance-133100042.html