CHARLOTTE, N.C. - Nucor Corporation (NYSE: NYSE:NUE), a leading manufacturer of steel and steel products, has provided its earnings guidance for the third quarter ending September 28, 2024. The company anticipates earnings to range between $0.87 and $0.97 per diluted share. Accounting for one-time non-cash charges of roughly $123 million related to asset impairments, adjusted earnings per diluted share are expected to fall between $1.30 and $1.40.
These one-time charges are associated with the impairment of non-current assets in the raw materials and steel products segments. Nucor's net earnings for the second quarter of 2024 were $2.68 per diluted share, and $4.57 per diluted share in the third quarter of the previous year.
The anticipated decrease in earnings for the third quarter of 2024, excluding the one-time charges, is primarily due to lower average selling prices in the steel mills segment. The steel products segment is also expected to report reduced earnings due to decreased selling prices and volumes. Similarly, the raw materials segment is forecasted to experience a drop in earnings compared to the second quarter of 2024.
In the same quarter, Nucor repurchased approximately 2.5 million shares at an average price of $156.07 per share, with a year-to-date total of about 11.0 million shares at an average price of $172.36 per share. The company has returned roughly $2.29 billion to stockholders in the form of share repurchases and dividends year-to-date.
Nucor will release its full earnings report after market close on October 21, 2024, followed by a conference call on the morning of October 22, 2024.
Nucor and its affiliates operate facilities across the United States, Canada, and Mexico, producing a wide range of steel products. The company is also noted as North America's largest recycler.
This earnings guidance is a non-GAAP financial measure, which excludes certain items that are not typically included in the most directly comparable measures calculated according to GAAP. The company believes that presenting adjusted earnings per diluted share offers additional insight for analysts and investors by providing a consistent basis for comparison across periods.
The information in this article is based on a press release statement by Nucor Corporation. As with all forward-looking statements, these are subject to various risks and uncertainties, and actual results may differ materially from those projected.
In other recent news, steel production leader Nucor Corporation has seen a shift in stance from major financial institutions. JPMorgan upgraded Nucor's stock from Neutral to Overweight, citing improved risk-reward and product diversification. The company's strong product diversification and structurally improved downstream margins were highlighted as key factors for steadier earnings throughout market cycles. Morgan Stanley also upgraded Nucor's stock from Equalweight to Overweight, anticipating strong earnings growth and robust cash generation for the years 2025 and 2026.
Nucor reported second-quarter earnings of $2.68 per diluted share, with year-to-date earnings reaching $6.14 per diluted share, despite a 23% decrease in net earnings from the previous quarter. The company repurchased 2.9 million shares for $500 million and received a positive outlook from Moody's (NYSE:MCO). As part of strategic growth, Nucor is investing in low-copper shred and electric technology, advocating for fair trade practices, and planning capital spending of about $3.5 billion for the current year.
However, Nucor anticipates lower consolidated earnings in the third quarter, primarily due to expected lower earnings in the Steel Mill segment. Despite challenges in net earnings and decreased margins in some segments, Nucor's strong investment-grade balance sheet and positive developments in automation and AI position it well for future market demands. These are the recent developments in the company's strategic growth and adaptation journey.
InvestingPro Insights
As Nucor Corporation (NYSE: NUE) prepares to release its third-quarter earnings report, investors and analysts are closely monitoring the company's performance metrics. According to InvestingPro data, Nucor has a market capitalization of $33.93 billion and is trading at a price-to-earnings (P/E) ratio of 10.28, reflecting a valuation that is attractive relative to its earnings. The adjusted P/E ratio for the last twelve months as of Q2 2024 stands at 9.97, indicating a consistency in the company's earnings potential.
InvestingPro Tips highlight Nucor's strong track record of shareholder returns, with the company having raised its dividend for 14 consecutive years and maintaining dividend payments for an impressive 52 years. This is coupled with a shareholder yield bolstered by aggressive share buybacks, as evidenced by the recent repurchase of approximately 2.5 million shares. These actions underscore management's confidence in the company's financial health and commitment to delivering value to its shareholders.
The company's robust financial position is further supported by a solid free cash flow yield and the ability to sufficiently cover interest payments, as noted by InvestingPro Tips. With analysts predicting profitability for the year and a strong return over the last five years, Nucor appears well-positioned in the Metals & Mining industry despite the anticipated decrease in earnings for the upcoming quarter.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers a comprehensive list of 16 tips on Nucor Corporation, which can be accessed at https://www.investing.com/pro/NUE.
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