NYSE$NUE

Nucor Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Nucor's earnings decreased in Q4 2019 compared to Q3 2019 and Q4 2018, with net earnings of $107.8 million, or $0.35 per diluted share.

Nucor Corporation reported consolidated net earnings of $107.8 million, or $0.35 per diluted share, for the fourth quarter of 2019. This includes non-cash impairment charges of $66.9 million, or $0.17 per diluted share. The company's performance was influenced by stronger than expected steel mill segment performance in December and improved general business conditions. Nucor's consolidated net sales decreased 6% to $5.13 billion in the fourth quarter of 2019 compared with $5.46 billion in the third quarter of 2019 and decreased 18% compared with $6.30 billion in the fourth quarter of 2018.

  • Q4 2019 earnings were higher than mid-December quantitative guidance due to stronger steel mill segment performance in December.
  • Inventory destocking concluded in Q4 2019, with customers resuming normal buying patterns.
  • General business conditions improved due to factors like a Federal Reserve rate cut and progress on trade.
  • Steel products segment had its best fourth quarter in history.

Headline financials

Total Revenue

$5.13B

Previous: $6.3B-18.5%
EPS (adj)

$0.52

Previous: $2.07-74.9%
Avg. Sales Price per Ton

$5.00

Previous: $16.00-68.8%
Total External Shipments

6.5M

Previous: 6.7M-3.0%
Capital Expenditures

$493M

Previous: $358M+37.7%
Free Cash Flow

$197M

Previous: $135M+45.9%
Net Income

$134M

Previous: $644M-79.2%
Operating Income

$178M

No prior period
Gross Profit

$435M

Previous: $1.11B-60.9%
Cash & Equivalents

$1.53B

Previous: $1.4B+9.7%
Total Assets

$18.3B

Previous: $17.9B+2.4%
Stock-Based Comp

$16M

Previous: $7.83M+105.1%

Revenue & EPS history

Nucor · Revenue · Quarterly

$5.13B

Q4 2019-18.5%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Nucor · $178M total across 4 segments · Q4 2019

  • Steel Mills
    $212M
  • Steel Products
    $147M
  • Corporate/Eliminations
    -$89M
  • Raw Materials
    -$92.6M

Forward guidance

Nucor expects earnings in the first quarter of 2020 to increase as compared to the fourth quarter of 2019. We expect earnings in the steel mills segment to increase in the first quarter of 2020 as compared to the fourth quarter of 2019 (excluding the fourth quarter of 2019 impairment charge), due to the previously mentioned price increases and expected higher volumes.

Tailwinds

  • Earnings in the first quarter of 2020 are expected to increase compared to the fourth quarter of 2019.
  • Earnings in the steel mills segment are expected to increase due to price increases and higher volumes.
  • A more stable pricing environment is expected in 2020.
  • Performance of the raw materials segment is expected to increase due to improved pricing.
  • There will be no planned nonroutine outages at the Louisiana DRI plant.

Headwinds

  • Profitability of the steel products segment is expected to decrease due to normal seasonality.

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 Q4 2019

Historical avgQ4 2019

+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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