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Steel Stocks on a High after NUE and STLD Report 3Q17 Earnings

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Part 2
Steel Stocks on a High after NUE and STLD Report 3Q17 Earnings PART 2 OF 3

Nucor’s 3Q17 Earnings: Some Key Takeaways

Nucor’s 3Q17 earnings

In the previous part of this series, we looked at Steel Dynamics’ (STLD) 3Q17 earnings. Now let’s take a look at Nucor’s (NUE) 3Q17 earnings, which it released on October 19, 2017.

Nucor’s 3Q17 Earnings: Some Key Takeaways

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Key takeaways

  • Nucor reported revenues of $5.2 billion in 3Q17. That compares to $4.3 billion in 3Q16 and $5.2 billion in 2Q17. While 3Q17 revenues rose on a yearly basis, they were flat on a sequential basis.
  • Nucor shipped 6.6 million tons of steel to outside customers in 3Q17. That’s a 2.0% fall compared to 2Q17. However, compared to 3Q16, shipments rose 12.0%.
  • Nucor reported ASP (average selling price) of $713 per ton in 3Q17. That’s a 2.0% rise compared to the sequential quarter. Its average scrap costs rose 1.0% quarter-over-quarter to $317 per ton in 3Q17. Looking at other steel producers (MT) (X), AK Steel (AKS) expects its 3Q17 ASP to be lower than 2Q17.
  • Nucor’s operating rates for its steel mills fell to 83.0% in 3Q17. To put this in context, consider that the metric was 88.0% in 2Q17 and 74.0% in 3Q16. The company reported a net income of $268.5 million in 3Q17, which translates to EPS (earnings per share) of $0.83. In comparison, Nucor’s EPS was $1 in 2Q17 and $0.95 in 3Q16. Its 3Q17 EPS fell on a yearly as well as a sequential basis, but it was higher than what Nucor had guided in September.

In the next and final part, we’ll look at some more key takeaways from Nucor’s 3Q17 earnings call.

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