Valued at a market cap of $28.5 billion, Nucor Corporation (NUE) manufactures and sells steel and steel products, including steel bars, steel joists, steel decks, and cold-finished bars. The Charlotte, North Carolina-based company also produces direct reduced iron (DRI) that is used in its steel mills. It is expected to announce its fiscal Q4 earnings results after the market closes on Monday, Jan. 27.
Ahead of this event, analysts project the steel company to report a profit of $0.63 per share, down significantly by 80.1% from $3.16 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q3, NUE’s adjusted EPS of $1.49 outpaced the forecasted figure by a notable margin of 6.4%.
For fiscal 2024, analysts expect NUE to report an EPS of $8.19, down by a massive 54.5% from $18 in fiscal 2023. Nonetheless, in fiscal 2025, EPS is expected to grow 1.2% year-over-year to $8.29.
Shares of NUE have declined 31.6% over the past 52 weeks, significantly underperforming both the S&P 500 Index's ($SPX) 24.4% rise and the Materials Select Sector SPDR Fund’s (XLB) marginal decrease over the same time frame.
Shares of NUE dipped 6.5% following its Q3 earnings release on Oct. 21, despite delivering better-than-expected Q3 adjusted earnings of $1.49 per share and revenues of $7.4 billion. However, a concerning 15.2% annual decline in its top-line figure and a discouraging 78.1% year-over-year fall in its consolidated net earnings to $249.9 million might have dampened investor confidence.
Decreased steel demand from several of its end-use markets, including manufacturing, construction, and automotive markets, and elevated import levels for certain steel products led to its lackluster performance. Due to lower pricing and reduced volumes, the management is anticipating a decline in fourth-quarter earnings as well. This might have weighed on investor confidence.
Yet, Wall Street analysts are moderately optimistic about Nucor’s stock, with a "Moderate Buy" rating overall. Among 13 analysts covering the stock, seven recommend "Strong Buy," one indicates a “Moderate Buy,” and five suggest “Hold.”
The mean price target for NUE is $155.54, which indicates a massive 31.6% potential upside from the current levels.
