How Analysts View Nucor after Its 3Q17 Earnings Beat
Nucor (NUE) reported its 3Q17 earnings on October 19. The company reported revenues of $5.2 billion in 3Q17. In comparison, it posted revenues of $4.3 billion in 3Q16 and $5.2 billion in 2Q17. Nucor reported a net income of $268.5 million in 3Q17, which translates to EPS (earnings per share) of $0.83. Nucor’s EPS was $1 in 2Q17 and $0.95 in 3Q16. Its 3Q17 EPS fell on a yearly and a sequential basis, but it was higher than what the company guided in September. While Nucor missed consensus revenue estimates in 3Q17, its profits were better than expected.
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According to the consensus estimates compiled by Thomson Reuters, Nucor has a mean one-year target price of $65.63, which represents 13.7% upside over its closing price on November 8. In contrast, Nucor carried a one-year target price of $64 on October 18—one day before its earnings release. Nucor received a “strong buy” rating from four analysts, while four analysts rated the stock as a “buy.” The remaining six analysts polled by Thomson Reuters on November 8 rated the stock as a “hold.”
Some of the analysts revised Nucor’s target price after its 3Q17 earnings release. Citi raised Nucor’s target price from $65 to $66, while Cowen and Company raised its target price from $57 to $63. JPMorgan Chase has been bullish on steel stocks (CLF) (XME)—especially U.S. Steel Corporation (X). JPMorgan Chase lowered Nucor’s target price from $78.5 to $74.5.
In the next part, we’ll see how analysts are rating AK Steel (AKS) after its 3Q17 earnings.