Nucor Falls As Q4 Guidance Misses Expectations

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Nucor Falls As Q4 Guidance Misses Expectations
Credit: © Reuters.

By Sam Boughedda

Investing.com — The stock price of steel company Nucor Corp (NYSE: NUE ) is down 12% Wednesday after it announced its fourth-quarter earnings guidance that lagged consensus estimates.

The North Carolina-based firm said it expects Q4 earnings to be between $7.65 to $7.75 per share. This means the company's fourth quarter earnings will be the highest quarterly earnings in Nucor history, surpassing its previous record of $7.28 per share, set in Q3 2021.

However, analysts polled by Investing.com anticipated EPS of $7.92, hence the fall in Nucor's share price. Meanwhile, as widely reported, the FactSet consensus is for EPS of $8.18.

"Steel mills segment earnings in the fourth quarter of 2021 remain robust and are expected to be comparable to the third quarter of 2021 despite lower volumes caused by year-end seasonality," stated Nucor.

"We expect the steel products segment to generate increased earnings in the fourth quarter of 2021 as demand in nonresidential construction markets remains strong."

The company said its raw materials segment earnings are expected to decrease in the fourth quarter compared with the third quarter this year, primarily due to margin compression at its direct reduced iron facilities.

"As we approach the end of the most profitable year in Nucor's history, demand continues to be strong in most of the end markets we serve. We are confident that 2022 will be another year of strong profitability for Nucor," the company said.

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