Why Analysts Expect a Big Bump in Nucor’s 3Q17 Revenues
Nucor’s 3Q17 revenues
Nucor (NUE) is slated to release its 3Q17 earnings on October 19. The company plans to hold its earnings conference call on the same day. In this article, we’ll see what analysts are projecting for Nucor’s 3Q17 revenues.
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Remember that Nucor is the largest US-based steel company. ArcelorMittal (MT) is the largest global steelmaker. U.S. Steel Corporation (X) is a distant twenty-fourth on the list of the leading global steel producers based on 2016 tonnage. See Your Guide to the Top 10 in the Global Steel Industry for a detailed overview of the leading steel producers (AKS)(XME).
Looking at Nucor’s 3Q17 revenue estimates, we see that analysts polled by Thomson Reuters expect the company to generate revenues of $5.2 billion in 3Q17. Nucor posted revenues of $4.3 billion in the corresponding quarter last year. However, while analysts expect a big bump in Nucor’s 3Q17 revenues on a year-over-year (or YoY) basis, they’re expected to be similar to its 2Q17 revenues.
The steep YoY rise in Nucor’s 3Q17 revenues, in part, looks due to the downstream acquisitions that the company made late last year. Acquisitions would not only add to Nucor’s top line but also lead to higher in-house steel demand for the company’s steel mill operations, leading to higher utilization rates.
Meanwhile, while Nucor’s 3Q17 revenues are expected to rise on a yearly basis, the company expects its profits to fall on a yearly as well as a sequential basis. In the next part of this series, we’ll look at Nucor’s 3Q17 guidance versus analysts’ estimates.