Uncovering Potential: Nucor's Earnings Preview

Nucor NUE will release its quarterly earnings report on Monday, 2024-10-21. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Nucor to report an earnings per share (EPS) of $1.49.

Investors in Nucor are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

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:

Performance of Nucor Shares

Shares of Nucor were trading at $158.09 as of October 17. Over the last 52-week period, shares are up 12.65%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on 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 with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of Steel Dynamics, Reliance and United States Steel, three major players in the industry, shedding light on 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.
• Reliance received a Outperform consensus from analysts, with an average 1-year price target of $325.0, implying a potential 105.58% upside.
• United States Steel received a Buy consensus from analysts, with an average 1-year price target of $42.64, implying a potential 73.03% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Steel Dynamics, Reliance and United States Steel, providing valuable insights into their respective standings within the industry and 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.

Delving into Nucor's Background

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.

Breaking Down Nucor's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Challenges: Nucor's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -15.18%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Nucor's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 7.95%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.1%, the company showcases effective utilization of 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: With a below-average debt-to-equity ratio of 0.33, Nucor adopts a prudent financial strategy, indicating a balanced approach to debt management.

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.