Nucor Corporation (NYSE:NUE) shares are trading lower premarket today. On Monday, the company provided guidance for the fourth quarter, expecting earnings per share of $0.55 – $0.65 versus the consensus of $0.86.
The main factor driving the expected profit decline is lower profits in the steel mills segment due to lower volumes and lower average selling prices.
The company expects profits in the steel products segment to decline, reflecting the same trends. However, the commodities segment is expected to see an increase in earnings excluding impairment from the third quarter of 2024.
Nucor reported net income of $1.05 per share in the third quarter of 2024 and $3.16 per share in the fourth quarter of 2023.
During its third-quarter earnings release, Nucor specifically stated that it expects fourth-quarter earnings per share to decline compared to the $1.05 reported for the third quarter, amid lower profits from its steel mill segment as a result of lower average sales prices and decreased volumes.
In the fourth quarter, Nucor repurchased approximately 2.1 million shares at an average price of $149.81 per share, bringing the total repurchases since the beginning of the year to 13.1 million shares at an average price of $168.75 per share.
Nucor has returned more than $2.73 billion to shareholders through share buybacks and dividend payments so far this year.
In October, the company reported quarterly adjusted earnings of $1.49 per share, which beat analysts’ consensus estimate of $1.47, and revenue of $7.44 billion, which beat analysts’ consensus estimate of $7.28 billion .
Nucor plans to report its fourth quarter results on Monday, January 27, 2025.
Investors can gain exposure to the stock through VanEck Steel ETF (NYSE:SLX) and First Trust Materials AlphaDEX Fund (NYSE:FXZ).
Price promotion: NUE shares are down 1.51% to $122.29 premarket at last check Tuesday.
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This article Nucor’s fourth-quarter guidance misses the mark, hit by steel sector slowdown; Stock Slides originally appeared on Benzinga.com
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