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Nucor’s 1Q16 Earnings Release: A Lost Mojo with Investors?

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1Q16 earnings release

Nucor (NUE) released its 1Q16 financial results on April 21 before the market opened. The company posted an adjusted EPS (earnings per share) of $0.22, which was at the lower end of its guidance, and the company failed to beat the consensus earnings estimate.

We should note that Nucor generally posts earnings above its guidance and consensus estimates. Nucor saw a downward price action of 1.5% after its 1Q16 earnings missed consensus estimates. By comparison, Steel Dynamics (STLD), which posted its 1Q16 earnings on April 20, traded flat after its earnings release. U.S. Steel Corporation (X) and AK Steel (AKS) are also facing a reality check in their respective 1Q16 earnings releases.

Nucor's 1Q16 Earnings Release: A Lost Mojo with Investors?

We should also note that Nucor boasts a strong balance sheet and is the only North American steel company to carry an investment grade (BND) credit rating. But the stock has lagged behind other steel companies in markets this year.

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Series overview

In this series, we’ll analyze Nucor’s 1Q16 earnings. We’ll explore what factors drove Nucor’s 1Q16 financial performance, and we’ll also discuss the key takeaways from the company’s earnings conference call.

Although some companies in metals and mining space, including Alcoa and Steel Dynamics, posted better-than-expected EPS, there have been concerns about the top line. While Alcoa missed consensus revenue estimates, Steel Dynamics barely met consensus estimates on high shipments.

Let’s look now at how Nucor’s 1Q16 revenues shaped up compared to market expectations.

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