NUE benefits from higher shipment volumes amid headwinds from lower selling prices in the first quarter.
Nucor's stock has underperformed, but I still rate it a "buy" due to its strong balance sheet and strategic shift towards value-added products. Despite lower steel prices, Nucor's Q1 earnings exceeded updated guidance, and management expects sequential improvement in earnings. Nucor's diversification into steel products has helped mitigate cyclicality, and its ongoing expansion projects are set to boost future profitability.
The headline numbers for Nucor (NUE) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Nucor (NUE) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $3.46 per share a year ago.
Lower average selling prices are likely to have hurt NUE's sales and margins in the first quarter.
Beyond analysts' top -and-bottom-line estimates for Nucor (NUE), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
Nucor (NUE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Nucor (NUE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The automotive demand recovery, strength in non-residential construction and a rebound in steel prices should enable the Zacks Steel Producers industry to thrive. NUE, STLD and X are set to gain from favorable industry fundamentals.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
When taking a long-term view, Nucor Corporation emerges as one of the best steel producers in the U.S. The stock is attractively priced for long-term investors, who are willing to take advantage of cyclical fluctuations. In addition to short-term market risks, there are also certain idiosyncratic risks that NUE investors should keep in mind.
The best time to buy companies that operate in cyclical industries is often when those industries are facing cyclical downturns. The problem is that you need to make sure you are buying the best of the best, especially if you are a long-term income-focused investor.