Nucor Corporation (NUE)

We adjusted our Nucor Corporation (NUE) model to better align with the mid-quarter earnings update issued last week. Our updated 4QE and CY20 EPS forecast are now $1.06 and $3.09, respectively (+$0.26), supported by more aggressive profit assumptions for the Steel Mill and Raw Material operating segments. Continue reading

Broad-based indications of strength are evident throughout the steel channels and there appears to be increasing probability of upward movement in spot market prices (looking out 3-4 quarters). The contact narrative shifted to the unusual carbon sheet and plate supply constraints, heading into a normally seasonal-slow demand period, and future production deficit anxieties.
Nucor Corporation (NUE) issued earnings outlook that may be considered disappointing by The Street. Management provided a 4Q20 EPS guidance range of $1.02-1.07. The language within this morning’s release regarding Steel Mill trends aligns with the feedback collected from our checks. We also heard from Steel Dynamics (STLD) today, which issued an adjusted 4Q20 guidance range of $0.80-0.84, beating expectations. Continue reading

The Nucor Corporation (NUE) management team is likely to reference incremental strength in carbon steel demand, an acceleration in upward spot market price momentum and early contributions from recent investments within the mid-quarter update (expected within the next two weeks). Continue reading

Nucor Corporation (NUE) kicked off the mini-earnings preview period by issuing a 3Q20 earnings outlook that crushed expectations. Yesterday, the management team offered an EPS guidance range of $0.50-0.55, considerably better than the $0.37 consensus forecast, citing continued strength in Downstream Product volumes/margins and better-than-expected carbon bar and beam mill shipments. Continue reading

We recently upgraded the shares of Nucor Company (NUE) to a HOLD recommendation (versus Underperform), which is part of a broader bullish trading call on the domestic steel group. Continue reading

We are calling a bottom and a carbon steel market inflection (and pricing). This is the main driver behind today’s positive trading call on the steel coverage group: Upgrades of Steel Dynamics (STLD) and Nucor Corporation (NUE) and a higher target price applied to Reliance Steel & Alum (RS). Continue reading

There appears to be early support for the latest mill price increase attempt on carbon sheet. After reviewing some of the signals coming out of the steel channel this week, we expect at least one-half of the attempted +$40/ton spot adjustment to stick. For the first time since January, our survey is showing a real demand push, in addition to the modest customer sourcing panic developing in the MW region. Continue reading

We are initiating coverage on the shares of Nucor Corporation (NUE) with an UNDERPERFORM recommendation and twelve-month target price of $38 (suggesting 11% downside versus the Friday close). Despite the better-than-expected mid-quarter guidance offered by the management team late last week, we are maintaining a cautious view on most of the companies positioned throughout the domestic carbon steel industry, including NUE. Continue reading