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Nucor Beats Estimates But Has a Big Earnings Drop

By Seth Jayson - Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Nucor (NYSE: NUE) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q1), Nucor met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Nucor tallied revenue of $4.55 billion. The 14 analysts polled by S&P Capital IQ expected to see a top line of $4.58 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $5.07 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.26. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS of $0.26 for Q1 were 43% lower than the prior-year quarter's $0.46 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 6.7%, 80 basis points worse than the prior-year quarter. Operating margin was 4.1%, 130 basis points worse than the prior-year quarter. Net margin was 1.9%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $4.73 billion. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $18.99 billion. The average EPS estimate is $1.91.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,086 members out of 2,173 rating the stock outperform, and 87 members rating it underperform. Among 509 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 493 give Nucor a green thumbs-up, and 16 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 $50.20.

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Stocks Mentioned

Nucor Corporation Stock Quote
Nucor Corporation
NUE
$119.97 (-0.61%) $0.74

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