NYSE$NUE

Nucor Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Nucor's earnings decreased compared to the previous year, but increased compared to the previous quarter.

Nucor Corporation reported consolidated net earnings of $108.9 million, or $0.36 per diluted share, for the second quarter of 2020. While this represents a decrease compared to the second quarter of 2019, it is an increase compared to the first quarter of 2020.

  • Consolidated net earnings were $108.9 million, or $0.36 per diluted share.
  • Net sales decreased 23% to $4.33 billion compared to the first quarter of 2020.
  • Tons shipped to outside customers were 5,479,000, a 24% decrease from the first quarter of 2020.
  • The company had $3.04 billion in cash and cash equivalents at the end of the quarter.

Headline financials

Total Revenue

$4.33B

Previous: $5.9B-26.6%
EPS (adj)

$0.36

Previous: $1.31-72.5%
Avg. Sales Price per Ton

$284.00

No prior period
Total External Shipments

5.5M

No prior period
Capital Expenditures

-$777M

Previous: -$650M-19.6%
Free Cash Flow

-$668M

Previous: -$263M-153.7%
Net Income

$109M

Previous: $386M-71.8%
Operating Income

$215M

Previous: $545M-60.5%
Gross Profit

$378M

Previous: $775M-51.3%
Cash & Equivalents

$2.79B

Previous: $1.43B+94.8%
Total Assets

$18.8B

Previous: $18.1B+3.5%
Stock-Based Comp

$29.1M

Previous: $48.8M-40.4%

Revenue & EPS history

Nucor · Revenue · Quarterly

$4.33B

Q2 2020-26.6%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Nucor · $181M total across 4 segments · Q2 2020

  • Steel Mills
    $161M
  • Steel Products
    $156M
  • Raw Materials
    -$1.83M
  • Corporate/Eliminations
    -$134M

Forward guidance

Nucor anticipates that earnings in the third quarter of 2020 will be similar to the second quarter of 2020.

Tailwinds

  • Downstream products segment is expected to have another strong quarter due to resilient nonresidential construction markets.
  • Nonresidential construction market conditions continue to benefit bar and structural mills.
  • The company is well positioned to navigate the uncertain environment due to its diverse product mix.
  • The company has an advantaged cost position.
  • The company has flexible production capability.

Headwinds

  • The ongoing COVID-19 pandemic continues to cause uncertainty in overall market conditions.
  • Market conditions for sheet and plate mills remain challenged.
  • Average selling prices remain depressed.
  • Raw materials segment performance is expected to decrease due to depressed pricing.
  • Weak oil and gas market activity hurts sheet and plate mills.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.6%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.5%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+11.2%

Q3 2022

Best reaction

-8.7%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+0.3%+11.0%
Q4 2025+0.8%+5.1%+14.5%
Q3 2025+5.4%+4.1%+10.4%
Q2 2025-1.7%+2.5%-8.6%
Q1 2025+1.9%+5.5%-6.5%
Q4 2024+3.8%+5.3%+10.5%
Q3 2024-7.7%-10.6%-6.4%
Q2 2024-0.6%-1.0%-9.9%
Q1 2024-8.7%-8.3%-10.6%
Q4 2023+7.9%+4.7%+9.8%
Q3 2023+4.1%+4.8%+11.3%
Q2 2023+5.5%+3.1%+1.9%
Q1 2023+4.0%+0.2%-6.1%
Q4 2022+6.5%+7.9%+3.7%
Q3 2022+11.2%+12.0%+16.5%
Q2 2022+1.8%+4.7%+17.3%
Q1 2022-4.8%-7.2%-29.1%
Q4 2021+7.3%+15.5%+39.8%
Q3 2021-2.7%+6.0%+7.3%
Q2 2021+1.5%+5.9%+25.3%
Q1 2021-2.9%+0.6%+27.4%
Q4 2020-5.1%-1.7%+16.5%
Q3 2020+3.6%-0.5%+8.5%
Q2 2020+1.4%+1.0%+5.8%
Q1 2020+4.9%+1.2%+5.1%
Q4 2019-2.3%-3.4%-15.0%
Q3 2019+2.3%+3.9%+4.7%
Q2 2019+3.7%+3.4%-10.9%
Q1 2019+2.4%-1.0%-9.8%
Q4 2018+3.1%+5.1%+3.5%
Q3 2018-1.2%-0.8%+7.0%
Q2 2018+1.0%+3.4%-4.9%
Q1 2018-2.9%-4.8%+0.2%
Q4 2017-3.0%-7.0%-2.2%
Q3 2017+4.7%+4.4%-4.3%
Q2 2017-0.7%+0.4%-10.8%
Q1 2017+4.1%+5.8%-1.7%
Q4 2016-5.3%-4.6%+4.2%
Q3 2016-0.3%-2.1%+22.5%
Q2 2016-2.5%-0.7%-7.5%
Q1 2016-1.5%
Q4 2015+9.4%
Q3 2015+7.9%
Q2 2015+1.1%
Q1 2015+2.8%
Q4 2014-0.7%
Q3 2014+2.1%
Q2 2014+0.6%
Q1 2014-2.7%
Q4 2013+0.0%
Q3 2013+2.5%
Q2 2013+0.8%
Q1 2013-0.4%
Q4 2012-1.9%
Q3 2012+0.3%
Q2 2012-1.9%
Q1 2012-6.0%
Q4 2011-1.4%
Q3 2011-3.0%
Q2 2011+0.2%
Q1 2011+1.5%
Q4 2010-0.7%
Q3 2010+1.8%
Q2 2010-2.9%
Q1 2009+0.4%
Q1 2010+3.4%
Q4 2009-1.6%
Q4 2007-1.6%
Q3 2008+0.2%
Q3 2009+0.2%
Q4 2008-1.0%
Q2 2009-1.0%
Q2 2008-1.0%

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