Why Is Nucor (NUE) Down 0.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Nucor (NUE). Shares have lost about 0.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Nucor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Nucor's Earnings and Revenues Surpass Estimates in Q3, Decline Y/YNucor reported earnings of $1.05 per share for third-quarter 2024, down from $4.57 in the year-ago quarter. Barring non-cash impairment charges related to the raw materials and steel products segments, adjusted earnings per share for the quarter were $1.49, topping the Zacks Consensus Estimate of $1.40.The company recorded net sales of around $7.4 billion, down around 15.2% year over year. The figure topped the Zacks Consensus Estimate of $7.2 billion. The top and bottom lines declined due to lower average selling prices.Operating FiguresTotal sales tons to outside customers for steel mills in the third quarter were 4,607,000 tons, a 0.6% increase year over year. It topped our estimate of 4,446,000 tons. The average sales price per ton fell 15%.Overall operating rates at the company's steel mills fell to 75% in the third quarter of 2024 from 77% in the third quarter of 2023.Segment HighlightsEarnings of the company’s steel mills unit fell 65% year over year on lower average selling pricing.Earnings in the steel products division fell 61% year over year in the third quarter due to reduced prices and lower volumes.The raw materials segment’s earnings were down 192% due to the non-cash impairment charge.Financial PositionCash and cash equivalents were around $4.26 billion at the end of the quarter, down 27.3% year over year. Long-term debt was roughly $5.68 billion, down 14.1%.The company repurchased around 2.5 million shares of its common stock at an average price of $156.07 per share during the quarter.OutlookThe company anticipates that consolidated net earnings attributable to its stockholders in the fourth quarter of 2024 will be lower than the third quarter of 2024. The prediction of a decline in earnings in the fourth quarter is due to reduced profitability in the steel mills segment due to lower average selling prices and lower volumes. Nucor expects earnings in the steel products division to fall in the fourth quarter from the third-quarter level, owing to lower average selling prices and fewer volumes. The raw materials segment's earnings are predicted to improve sequentially, excluding the impairment charge taken during the third quarter of 2024. How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -30.35% due to these changes.VGM ScoresAt this time, Nucor has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Nucor has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerNucor belongs to the Zacks Steel - Producers industry. Another stock from the same industry, Steel Dynamics (STLD), has gained 6.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.Steel Dynamics reported revenues of $4.34 billion in the last reported quarter, representing a year-over-year change of -5.4%. EPS of $2.05 for the same period compares with $3.47 a year ago.For the current quarter, Steel Dynamics is expected to post earnings of $1.59 per share, indicating a change of -39.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.4% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Steel Dynamics. Also, the stock has a VGM Score of C.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nucor Corporation (NUE): Free Stock Analysis Report Steel Dynamics, Inc. (STLD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks