Why Is Nucor (NUE) Down 0.9% Since Last Earnings Report?

Core Viewpoint - Nucor's recent earnings report shows a significant decline in earnings and revenues year-over-year, with expectations for continued challenges in the upcoming quarter [2][3][8]. Financial Performance - Nucor reported earnings of $1.05 per share for Q3 2024, down from $4.57 in the same quarter last year. Adjusted earnings per share were $1.49, exceeding the Zacks Consensus Estimate of $1.40 [2]. - Net sales were approximately $7.4 billion, a decrease of 15.2% year-over-year, but above the Zacks Consensus Estimate of $7.2 billion [3]. - Total sales tons to outside customers for steel mills were 4,607,000 tons, a slight increase of 0.6% year-over-year, surpassing the estimate of 4,446,000 tons. The average sales price per ton fell by 15% [4]. Segment Performance - Earnings from the steel mills unit dropped 65% year-over-year due to lower average selling prices [5]. - The steel products division saw a 61% decline in earnings year-over-year, attributed to reduced prices and lower volumes [5]. - The raw materials segment's earnings decreased by 192% due to a non-cash impairment charge [6]. Financial Position - Cash and cash equivalents were around $4.26 billion at the end of the quarter, down 27.3% year-over-year. Long-term debt was approximately $5.68 billion, a decrease of 14.1% [7]. - The company repurchased about 2.5 million shares at an average price of $156.07 per share during the quarter [7]. Outlook - Nucor anticipates that consolidated net earnings for Q4 2024 will be lower than in Q3 2024, primarily due to reduced profitability in the steel mills segment and lower volumes [8][9]. - The raw materials segment's earnings are expected to improve sequentially, excluding the impairment charge taken in Q3 2024 [9]. Market Sentiment - There has been a downward trend in estimates for Nucor, with a consensus estimate shift of -30.35% [10][11]. - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations for below-average returns in the coming months [13]. Industry Comparison - Nucor is part of the Zacks Steel - Producers industry, where competitor Steel Dynamics has gained 6.4% over the past month despite reporting a year-over-year revenue decline of 5.4% [14]. - Steel Dynamics is expected to post earnings of $1.59 per share for the current quarter, reflecting a change of -39.1% from the previous year [15].