Nucor’s 1Q17 Earnings: What You Need to Know
Nucor’s 1Q17 earnings
Previously we looked at Steel Dynamics’ (STLD) 1Q17 earnings. In this part, we’ll look at Nucor’s 1Q17 earnings. Nucor (NUE) released its 1Q17 earnings on April 20 and managed to beat its revenue estimates by a decent margin.
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- Nucor reported revenues of $4.8 billion in 1Q17. The company posted revenues of ~$4.0 billion in 4Q16 and ~$3.7 billion in 1Q16. Nucor shipped 6.6 million tons of steel (XLB) to outside customers in 1Q17—a year-over-year increase of 9%. Its shipments rose 19% compared to the sequential quarter.
- Nucor’s 1Q17 ASP (average selling prices) rose 8% compared to 4Q16. Higher flat rolled steel prices were the key driver of higher ASP. Higher ASP had a positive impact on Nucor’s 1Q17 profitability. Nucor reported EBITDA (earnings before interest, tax, depreciation, and amortization) of $773 million in 1Q17. The company posted adjusted EBITDA of $425 million in 4Q16 and $347 million in 1Q16.
- Nucor’s EPS (earnings per share) also rose steeply during the quarter. The company generated EPS of $1.1 in 1Q17. The company posted EPS of $0.50 in 4Q16 and $0.27 in 1Q16.
- Nucor’s operating cash flows were lower in 1Q17 compared to the previous quarter. However, lower operating cash flows could be attributed to working capital buildup amid strengthening steel market conditions (X) (AKS).
Meanwhile, after posting multi-quarter high profits in 1Q17, Nucor sounded optimistic about its 2Q17 outlook. We’ll discuss this more in the next part.