A month has gone by since the last earnings report for Nucor (NUE). Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nucor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Nucor reported earnings of $1.22 per share for fourth-quarter 2024, down from $3.16 in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 64 cents.
The company recorded net sales of around $7.1 billion, down around 8.2% year over year. The figure topped the Zacks Consensus Estimate of around $6.6 billion.
Earnings declined primarily due to lower prices.
Total sales tons to outside customers for steel mills in the fourth quarter were 4,580,000 tons, up 4% year over year. The figure beat our estimate of 4,202,000 tons.
The company's steel mills' overall operating rates were 74% in the fourth quarter of 2024, compared with 75% in the third quarter of 2024 and 74% in the fourth quarter of 2023.
Earnings for the company's steel mills unit declined 71% year on year in the reported quarter due to lower average selling prices and lower volumes.
In the fourth quarter, earnings in the steel products segment declined 49.8% year over year due to lower volumes and lower average selling prices.
The raw materials segment reported earnings of $57 million against a loss of $14 million a year ago.
Nucor's cash and cash equivalents and short-term investments were $4.14 billion at the end of the fourth quarter of 2024. Its $1.75 billion revolving credit facility remains undrawn and will not expire until November 2026.
For 2024, Nucor reported net earnings of $2.03 billion or $8.46 per share. This compares with $4.52 billion in net earnings, or $18 per share in 2023.
Nucor recorded net sales of $30.73 billion for full-year 2024, down 11.5% from $34.71 billion reported in 2023. Total tons shipped to outside customers in 2024 amounted to approximately 24,767,000 tons, down 1.7% year over year.
The company expects first-quarter 2025 earnings in the steel mills and steel products segments to be comparable to the fourth quarter of 2024. Earnings in the raw materials segment are predicted to decline sequentially in the first quarter. The company expects higher corporate, administrative, and tax impacts in the first quarter of 2025 than in the fourth quarter of 2024, potentially resulting in lower net earnings overall.
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 8.25% due to these changes.
Currently, Nucor has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, 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.
Nucor has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Nucor is part of the Zacks Steel - Producers industry. Over the past month, Steel Dynamics (STLD), a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended December 2024 more than a month ago.
Steel Dynamics reported revenues of $3.87 billion in the last reported quarter, representing a year-over-year change of -8.5%. EPS of $1.36 for the same period compares with $2.61 a year ago.
For the current quarter, Steel Dynamics is expected to post earnings of $1.64 per share, indicating a change of -55.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.7% over the last 30 days.
Steel Dynamics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
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