Nucor (NYSE:NUE) stock declined about 7% in yesterday’s extended trading session after the company released its mixed first-quarter results. While revenue surpassed analyst estimates, earnings fell short of expectations. Furthermore, the weaker-than-expected earnings guidance dampened investor sentiment.
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NUE is a leading American steel producer known for its innovative steel products and sustainable manufacturing practices.
NUE’s Q1 Snapshot
The company posted earnings of $3.46 per share, which missed consensus estimates of $3.64 per share. Moreover, the reported figure declined by 22.2% from the prior-year quarter.
Meanwhile, Q1 revenues of $8.14 billion fell by 6.5% year-over-year but came above the Street’s estimates of $8.26 billion. The decrease can be attributed to a 3% decline in the average selling price and a 2% fall in total shipments in the Steel Mills segment.
Disappointing Q2 Outlook
The company anticipates that Q2 earnings will decline sequentially, primarily due to lower contributions from the Steel Mills and Steel Products segments.
Nevertheless, Nucor expects earnings from the Raw Materials segment will continue to increase sequentially in Q2.
Is Nucor a Good Stock to Buy?
Overall, the stock has a Moderate Buy consensus rating based on five Buy, two Hold, and one Sell recommendations. Shares of the company have gained 11.9% in the past three months, outperforming the S&P 500’s (SPX) nearly 2% gain. After this surge in its price, analysts’ average price target on Nucor stock of $196.75 implies a limited upside potential of 2.7% from current levels.
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