Nucor’s 1Q15 earnings
Nucor (NUE) reported its 1Q15 earnings on April 23. It posted EPS (earnings per share) of $0.21. This was higher than the guidance provided by Nucor. The results were treated with jubilation on Wall Street, sending Nucor’s share price up by more than 2%. Share prices of steel companies like ArcelorMittal (MT) and AK Steel (AKS) also shot up on positive commentary from Nucor management.
Reliance Steel & Aluminum (RS), the leading service center in North America, also reported its 1Q15 earnings on the same day. Its share price rallied more than 9% after its earnings release.
What will we cover?
In this series, we’ll look at key investor takeaways from Nucor’s 1Q15 earnings. We’ll cover the various hits and misses in Nucor’s 1Q15 earnings. In the end, we’ll also look at Nucor’s 2015 outlook. Currently, Nucor forms 2.6% of the Materials Select Sector SPDR ETF (XLB).
Nucor manufactures both raw steel and steel products like fasteners, girders, joists, and decks. It also has scrap processing operations. The above chart shows Nucor’s key business segments.
In 2008, Nucor acquired The David J. Joseph Company, the world leader in scrap metal brokerage. It helps Nucor secure steel scrap for its steel plants. It also helps Nucor earn brokerage income from third parties. Nucor also has working interest investment in natural gas drilling, which helps it secure natural gas for its steel plants.
In the next part, we’ll take a look at Nucor’s 1Q15 earnings in detail.