The 10-second takeaway
For the quarter ended June 29 (Q2), Nucor beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share shrank significantly.
Margins shrank across the board.
Nucor reported revenue of $4.67 billion. The 12 analysts polled by S&P Capital IQ foresaw net sales of $4.62 billion on the same basis. GAAP reported sales were 8.6% lower than the prior-year quarter's $5.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.27 for Q2 were 23% lower than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.7%, 110 basis points worse than the prior-year quarter. Operating margin was 4.1%, 150 basis points worse than the prior-year quarter. Net margin was 1.8%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.81 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $18.77 billion. The average EPS estimate is $1.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,077 members out of 2,161 rating the stock outperform, and 84 members rating it underperform. Among 500 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 489 give Nucor a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nucor is outperform, with an average price target of $49.50.
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