A Preview Of Nucor's Earnings

Nucor NUE is gearing up to announce its quarterly earnings on Monday, 2024-10-21. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Nucor will report an earnings per share (EPS) of $1.49.

The market awaits Nucor's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.33, leading to a 1.1% drop in the share price on the subsequent day.

Here's a look at Nucor's past performance and the resulting price change:

Nucor Share Price Analysis

Shares of Nucor were trading at $158.09 as of October 17. Over the last 52-week period, shares are up 12.94%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Nucor

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Nucor.

Nucor has received a total of 5 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $170.0, the consensus suggests a potential 7.53% upside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Steel Dynamics, Reliance and United States Steel, three key industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Neutral trajectory for Steel Dynamics, with an average 1-year price target of $136.82, implying a potential 13.45% downside.
• For Reliance, analysts project an Outperform trajectory, with an average 1-year price target of $325.0, indicating a potential 105.58% upside.
• Analysts currently favor an Buy trajectory for United States Steel, with an average 1-year price target of $42.64, suggesting a potential 73.03% downside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for Steel Dynamics, Reliance and United States Steel, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Nucor ranks highest in gross profit among its peers. However, it ranks lowest in revenue growth and return on equity. Overall, Nucor's performance is mixed compared to its peers.

About Nucor

Nucor Corp manufactures steel and steel products. The company also produces direct reduced iron for use in its steel mills. The operations include international trading and sales companies that buy and sell steel and steel products manufactured by the company and others. The operating business segments are: steel mills, steel products, and raw materials, the steel mills segment derives maximum revenue. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor's equity method investments in NuMit and NJSM.

Nucor: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Nucor's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -15.18%. This indicates a decrease in the company's top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.95%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Nucor's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.1% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.89%, the company showcases effective utilization of assets.

Debt Management: Nucor's debt-to-equity ratio is below the industry average at 0.33, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Nucor visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.