Nucor Corporation Prepares for Q1 Earnings Release Amid Market Pressures

Charlotte, North Carolina-based Nucor Corporation (NUE) specializes in manufacturing and selling a variety of steel products, including structural steel, bars, joists, decks, and cold finished bars. With a market capitalization of $25.6 billion, Nucor plays a significant role in industries like construction, automotive, energy, and manufacturing. The company is set to announce its fiscal Q1 earnings for 2025 after the market closes on Monday, April 28.

Expected Earnings and Historical Performance

Ahead of the upcoming earnings report, analysts forecast Nucor to announce a profit of $0.72 per share, reflecting a steep decline of 79.2% from the $3.46 reported in the same quarter last year. Notably, Nucor has outperformed Wall Street’s earnings predictions in three of the last four quarters, missing estimates only once. In Q4 2024, NUE’s earnings per share (EPS) of $1.22 exceeded expectations by a substantial 90.6%.

Long-term Forecasts and Challenges

For fiscal 2025, analysts anticipate NUE to report a profit of $7.94 per share, down 10.8% from $8.90 in fiscal 2024. However, expectations for growth are on the horizon, as EPS is projected to rebound in 2026, climbing by 36.9% year over year to reach $10.87.

Stock Performance and Market Comparisons

Nucor’s stock has seen a decline of 43% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 5.5% gain and the Materials Select Sector SPDR Fund’s (XLB) 9.4% decrease during the same period.

Investor Sentiment Post-Q4 Earnings

On January 27, NUE’s shares fell slightly following its Q4 earnings report. The company reported a profit of $1.22 per share and revenue of $7.1 billion, both of which exceeded analysts’ expectations. Nonetheless, revenue experienced an 8.2% year-over-year decline due to reduced average sales prices per ton and lower shipload volumes to internal customers. Additionally, its net income per share dropped 61.4% from the previous year, impacted by weaker earnings in the steel mills and steel products sectors. These factors may have contributed to a cautious approach from investors.

Analyst Ratings and Price Target

Wall Street analysts generally maintain a moderate outlook for NUE’s stock, assigning an overall “Moderate Buy” rating. Of the 13 analysts covering NUE, eight suggest a “Strong Buy,” one indicates a “Moderate Buy,” while four recommend a “Hold.” The average price target for NUE stands at $151.73, implying a potential upside of 36.9% from current trading levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.