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.
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 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.
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.)
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.
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Nucor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.