A month has passed by because the final earnings report for Nucor (NUE). Shares have added about 7.5% in that time-frame, outperforming the S&P 500.
Will the current optimistic pattern proceed main as much as its subsequent earnings launch, or is Nucor due for a pullback? Earlier than we dive into how buyers and analysts have reacted as of late, let’s take a fast have a look at its most up-to-date earnings report in an effort to get a greater deal with on the necessary catalysts.
Nucor’s Earnings and Revenues Surpass Estimates in This fall, Down Y/Y
Nucor reported earnings of $1.22 per share for fourth-quarter 2024, down from $3.16 within the year-ago quarter. The underside line topped the Zacks Consensus Estimate of 64 cents.
The corporate recorded internet gross sales of round $7.1 billion, down round 8.2% yr over yr. The determine topped the Zacks Consensus Estimate of round $6.6 billion.
Earnings declined primarily as a result of decrease costs.
Working Figures
Whole gross sales tons to outdoors prospects for metal mills within the fourth quarter have been 4,580,000 tons, up 4% yr over yr. The determine beat our estimate of 4,202,000 tons.
The corporate’s metal mills’ total working charges have been 74% within the fourth quarter of 2024, in contrast with 75% within the third quarter of 2024 and 74% within the fourth quarter of 2023.
Phase Highlights
Earnings for the corporate’s metal mills unit declined 71% yr on yr within the reported quarter as a result of decrease common promoting costs and decrease volumes.
Within the fourth quarter, earnings within the metal merchandise section declined 49.8% yr over yr as a result of decrease volumes and decrease common promoting costs.
The uncooked supplies section reported earnings of $57 million in opposition to a lack of $14 million a yr in the past.
Monetary Place
Nucor’s money and money equivalents and short-term investments have been $4.14 billion on the finish of the fourth quarter of 2024. Its $1.75 billion revolving credit score facility stays undrawn and won’t expire till November 2026.
FY24 Outcomes
For 2024, Nucor reported internet earnings of $2.03 billion or $8.46 per share. This compares with $4.52 billion in internet earnings, or $18 per share in 2023.
Nucor recorded internet gross sales of $30.73 billion for full-year 2024, down 11.5% from $34.71 billion reported in 2023. Whole tons shipped to outdoors prospects in 2024 amounted to roughly 24,767,000 tons, down 1.7% yr over yr.
Outlook
The corporate expects first-quarter 2025 earnings within the metal mills and metal merchandise segments to be similar to the fourth quarter of 2024. Earnings within the uncooked supplies section are predicted to say no sequentially within the first quarter. The corporate expects larger company, administrative, and tax impacts within the first quarter of 2025 than within the fourth quarter of 2024, doubtlessly leading to decrease internet earnings total.
How Have Estimates Been Transferring Since Then?
It seems, estimates assessment flatlined through the previous month.
The consensus estimate has shifted 8.25% as a result of these adjustments.
VGM Scores
Presently, Nucor has a subpar Development Rating of D, nonetheless its Momentum Rating is doing a bit higher with a C. Charting a considerably related path, the inventory was allotted a grade of B on the worth aspect, placing it within the second quintile for this funding technique.
General, the inventory has an mixture VGM Rating of C. For those who aren’t targeted on one technique, this rating is the one you need to be serious about.
Outlook
Nucor has a Zacks Rank #4 (Promote). We anticipate a beneath common return from the inventory within the subsequent few months.
Efficiency of an Trade Participant
Nucor is a part of the Zacks Metal – Producers business. Over the previous month, Metal Dynamics (STLD), a inventory from the identical business, has gained 5.1%. The corporate reported its outcomes for the quarter ended December 2024 greater than a month in the past.
Metal Dynamics reported revenues of $3.87 billion within the final reported quarter, representing a year-over-year change of -8.5%. EPS of $1.36 for a similar interval compares with $2.61 a yr in the past.
For the present quarter, Metal Dynamics is predicted to put up earnings of $1.64 per share, indicating a change of -55.3% from the year-ago quarter. The Zacks Consensus Estimate has modified -3.7% during the last 30 days.
Metal Dynamics has a Zacks Rank #3 (Maintain) primarily based on the general route and magnitude of estimate revisions. Moreover, the inventory has a VGM Rating of C.
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Nucor Corporation (NUE) : Free Stock Analysis Report
Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
