Nucor Corporation NUE reported earnings of $1.22 per share for fourth-quarter 2024, down from $3.16 in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 64 cents.

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The company recorded net sales of $7,076 million, down around 8.2% year over year. The figure topped the Zacks Consensus Estimate of $6,598 million.

Earnings declined primarily due to lower prices.

NUE's Operating Figures

Total sales tons to outside customers for steel mills in the fourth quarter were 4,580,000 tons, up 4% year over year. The figure beat our estimate of 4,202,000 tons.

The company's steel mills' overall operating rates were 74% in the fourth quarter of 2024, compared with 75% in the third quarter of 2024 and 74% in the fourth quarter of 2023.

NUE's Segment Highlights

Earnings for the company's steel mills unit declined 71% year on year in the reported quarter due to lower average selling prices and lower volumes.

In the fourth quarter, earnings in the steel products segment declined 49.8% year over year due to lower volumes and lower average selling prices.

The raw materials segment reported earnings of $57 million against a loss of $14 million a year ago. 

NUE's Financial Position

Nucor's cash and cash equivalents and short-term investments were $4.14 billion at the end of the fourth quarter of 2024. Its $1.75 billion revolving credit facility remains undrawn and will not expire until November 2026.

NUE's FY24 Results

For 2024, Nucor reported net earnings of $2.03 billion or $8.46 per share. This compares with $4.52 billion in net earnings, or $18 per share in 2023.

Nucor recorded net sales of $30.73 billion for full-year 2024, down 11.5% from $34.71 billion reported in 2023. Total tons shipped to outside customers in 2024 amounted to approximately 24,767,000 tons, down 1.7% year over year. 

NUE's Outlook

The company expects first-quarter 2025 earnings in the steel mills and steel products segments to be comparable to the fourth quarter of 2024. Earnings in the raw materials segment are predicted to decline sequentially in the first quarter. The company expects higher corporate, administrative, and tax impacts in the first quarter of 2025 than in the fourth quarter of 2024, potentially resulting in lower net earnings overall.

NUE's Stock Price Performance

Shares of Nucor have moved down 31% in a year compared with the industry’s 24.4% decline.

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NUE’s Zacks Rank & Key Picks

Nucor currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hecla Mining Company HL and Ingevity Corporation NGVT.

CRS is slated to report fiscal second-quarter results on Jan. 30. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.58. CRS beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 14.1%. CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hecla Mining is expected to report fourth-quarter results on Feb. 2. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.

Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%. 

 

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