Nucor and Steel Dynamics: Steel Earnings Start with a Bang



Steel earnings

The 1Q17 earnings season is in full swing. Steel Dynamics (STLD) released its 1Q17 earnings on April 19. The company held its conference call the next day. Nucor (NUE) released its 1Q17 earnings and held its conference call on April 20. AK Steel (AKS) will release its earnings on April 24. U.S. Steel Corporation (X) will also release its 1Q17 earnings on April 24. The company will hold a conference call the next day.

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Market sentiments

Steel companies’ 1Q17 earnings are coming at a time when markets are accessing how falling Chinese steel prices and seaborne iron ore prices impact US steelmakers (XME). Steel stocks were in consolidation mode in 1Q17 after their spectacular rally in 4Q16. While ArcelorMittal (MT) rose 15.7% during the quarter, AK Steel fell almost 30%.

U.S. Steel Corporation closed with a marginal rise in 1Q17. Steel stocks had been flying high in 4Q16 after President Trump’s election sparked a massive rally. However, President Trump’s effect seems to have lost its shine this year amid concerns about China’s steel industry.

Series overview

In this series, we’ll analyze Nucor and Steel Dynamics’ 1Q17 earnings. Both companies posted better-than-expected earnings during the quarter, which lifted market sentiments. We’ll also look at key takeaways from the companies’ earnings conference calls.

In the next part, we’ll analyze Steel Dynamics’ 1Q17 earnings.


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