Steel Company Nucor's Q3: Earnings Beat, 16% Sales Decline, Moderating Average Selling Prices & More

Nucor Corp NUE reported a third-quarter FY23 net sales decline of 16.4% year-over-year to $8.78 billion, beating the consensus of $8.31 billion.

EPS fell to $4.57 from $6.50 a year ago, beating the consensus of $4.25.

The average sales price per ton decreased by 14% Y/Y and fell 3% Q/Q.

More than 6.24 million tons were shipped to outside customers, a decrease of 3% Y/Y.

Total steel mill shipments in the quarter fell 2% Y/Y and 4% Q/Q.

The average scrap and scrap substitute cost per gross ton used was $415, down 17% Y/Y and decreased 9% Q/Q.

Overall operating rates at the company's steel mills decreased to 77% as compared to 84% in the prior quarter and against 77% in the previous year's quarter.

NUE states that the earnings for the steel mills segment declined sequentially primarily due to lower pricing, and, to a lesser extent, decreased volumes.

The Charlotte, North Carolina-based company reported an EBITDA of $1.82 billion for the quarter.

NUE's cash provided by operating activities for nine months ended September 30, 2023, totaled $5.59 billion, compared to $7.54 billion a year ago.

As of Q3 2023, the company had $6.73 billion in cash and cash equivalents.

In Q3, Nucor repurchased ~3 million shares at an average price of $168.99 per share. As of September 30, 2023, Nucor had ~$3.5 billion remaining for repurchases under its authorized share repurchase program.

On September 14, 2023, Nucor's board declared a cash dividend of $0.51 per share, payable on November 9, 2023, to stockholders of record as of September 29, 2023.

4Q23 Outlook: Nucor expects earnings to decrease Q/Q due to lower pricing across all three operating segments, and, to a lesser extent, decreased volumes.

Price Action: NUE shares are trading higher by 3.94% at $146.02 on the last check Tuesday.