Why Nucor Shares Are Falling Today

Nucor Corp NUE is trading lower Wednesday after the company issued fourth-quarter guidance below estimates.

Nucor expects fourth-quarter earnings to be in a range of $7.65 to $7.75 per share versus the estimate of $7.95 per share. However, if the company meets guidance, the fourth quarter will mark the highest quarterly earnings in Nucor history.

Nucor said steel mills earnings remain robust and are expected to be comparable to the third quarter despite lower volumes caused by year-end seasonality. 

The company said raw materials earnings are expected to decrease in the fourth quarter compared to the third quarter primarily due to margin compression at its direct reduced iron facilities.

"As we approach the end of the most profitable year in Nucor's history, demand continues to be strong in most of the end markets we serve. We are confident that 2022 will be another year of strong profitability for Nucor," the company said.

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Nucor manufactures steel and steel products. The company also produces direct reduced iron for use in its steel mills.

NUE Price Action: Nucor has traded as high as $128.81 and as low as $47.93 over a 52-week period.

The stock was down 7.48% at $109.56 at time of publication.

Photo: courtesy of Nucor.