Nucor Stock Gains After Mixed Q1 Results, Anticipates Sequentially Higher Earnings In Q2

Nucor Corp NUE reported a first-quarter FY23 net sales decline of 17% year-over-year to $8.71 billion, missing the consensus of $9 billion.
EPS fell to $4.45 from $7.67 in 1Q22, beating the consensus of $3.81.
The company reported an EBITDA of $1.89 billion for the quarter.
The average sales price per ton decreased by 18% Y/Y and 11% Q/Q.
Total of 6.443 million tons were shipped to outside customers, an increase of 1% Y/Y.
Total steel mill shipments in the quarter increased 4% Y/Y and +18% Q/Q.
NUE's cash provided by operating activities totaled $1.21 billion in Q1, compared to $2.47 billion a year ago.
The average scrap and scrap substitute cost per gross ton used was $414, a 16% decrease compared to $495 in 1Q22.
Overall operating rates at steel mills increased to 79%, compared to 77% in 1Q22.
NUE had $4.70 billion in cash and equivalents at the end of the quarter.
As of April 1, 2023, Nucor had approximately 251 million shares outstanding and about $656.9 million remaining for repurchases under its existing authorized share repurchase program.
Nucor's cash dividend of $0.51 per share is payable on May 11, 2023, to stockholders of record as of March 31, 2023.
2Q23 Outlook: Nucor expects earnings to increase compared to the first quarter of 2023. It expects earnings for the steel mills segment to improve in Q2 compared to Q1, primarily due to margin expansion at sheet mills.
The steel products segment is expected to deliver strong results but will moderate from Q1 due to expected lower average selling prices offsetting higher volumes. The raw materials segment is expected to improve sequentially due to the improved profitability of DRI facilities.
Price Action: NUE shares are trading higher by 5.79% at $156.15 on the last check Thursday.

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