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It's Showtime for Nucor

By Seth Jayson - Updated Apr 10, 2017 at 11:50AM

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Checking expectations

Nucor (NYSE: NUE) is expected to report Q2 earnings on July 18. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Nucor's revenues will compress -9.8% and EPS will shrink -34.8%.

The average estimate for revenue is $4.60 billion. On the bottom line, the average EPS estimate is $0.30.

Revenue details
Last quarter, Nucor notched revenue of $4.55 billion. 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
Last quarter, EPS came in at $0.26. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $18.79 billion. The average EPS estimate is $1.58.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,078 members out of 2,162 rating the stock outperform, and 84 members rating it underperform. Among 496 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 485 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 $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.

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Stocks Mentioned

Nucor Corporation Stock Quote
Nucor Corporation
NUE
$142.65 (0.55%) $0.78

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