This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nucor Outlook Highlights Unsure Steel Recovery

NEW YORK ( TheStreet) -- As more dour data from the manufacturing industries highlighted the uncertainty of this economic recovery, and investor sentiment continued to darken, the country's largest steelmaker, Nucor (NUE - Get Report), offered a mixed outlook Wednesday.

In its traditional mid-quarter financial update, the Charlotte, N.C.-based company offered a profit forecast for its second period that appeared to fall below analysts' expectations. Nucor told investors that it would likely post per-share earnings between 75 cents and 80 cents. The consensus among 10 Wall Street analysts was earnings of 87 cents. (Nucor said the projected range includes an expected LIFO accounting charge of 6 cents a share. Stripping out the charge would boost Nucor's EPS.)

As Nucor strove to point out, the second-quarter numbers would represent year-over-year growth of between 160% and 180%.

"I wouldn't make much of the fact that the range is a little below consensus estimates," said Bridgett Freas, an analyst at Morningstar in Chicago, in an email. "Actual results may come in right in line with consensus and a little conservatism in the range is to be expected."

On most counts, Nucor was bullish enough as to seem contrarian, given the current market direction and the steady chain of downbeat economic data.

"We continue to believe that end markets such as automotive, heavy equipment, energy, and general manufacturing have experienced some real demand improvement," the company said in a statement.

Yet those words appeared to represent a shift. When the company reported first-quarter results, Nucor said that it was "seeing some signs of market weakness that may impact results near the end of the second quarter."

Nucor shares on Wednesday bucked the downward draft in the broader equities markets, rising as much as 2% before easing back. Shares of the mini-mill operator, which chiefly uses old scrap metal to make steel, were trading recently at $40.93, up 0.5% from the previous close. Volume was heaving, reaching 1 million shares just 30 minutes into the trading day. Average daily turnover over the last three months has been about 3 million shares.

Nucor in recent weeks has pushed home price hikes on its key steel products, along with competitors such as AK Steel (AKS - Get Report) and the North American mills owned by Russia's Steverstal, among others.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AKS $4.68 0.00%
MT $5.63 0.00%
NUE $49.78 0.00%
STLD $25.21 0.00%
X $19.11 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs