Nucor’s 4Q17 Earnings: What’s the Word on Wall Street?

Nucor (NUE), the leading US-based steel producer (XME), is expected to release its 4Q17 earnings on January 30. AK Steel’s (AKS) 4Q17 earnings are also scheduled to be released on that day.

U.S. Steel Corporation’s (X) earnings release is scheduled for January 31, and ArcelorMittal (MT) is slated to release its 4Q17 financial results on February 10.

In this series, we’ll look at analysts’ projections for Nucor’s 4Q17 earnings. We’ll look at the factors that could impact Nucor’s 4Q17 financial performance and how the company could fare on key metrics. Let’s begin by looking at Nucor’s 4Q17 revenue estimates.

Analysts polled by Thomson Reuters expect Nucor to post 4Q17 revenues of ~$4.8 billion. In contrast, Nucor posted revenues of ~$4.0 billion in 4Q16 and ~$5.2 billion in 3Q17. Although Nucor’s 4Q17 revenues are expected to rise sharply on a yearly basis, they are expected to be lower compared to the previous quarter.

US steel demand tends to slow down in the fourth quarter. Furthermore, US steel prices softened in 4Q17 compared to 3Q17. These two factors could weigh heavily on Nucor’s 4Q17 revenues.

As for the steep yearly increase in revenues, Nucor announced two downstream acquisitions late in 2016. The company’s 4Q17 revenues are expected to reflect the sales from these acquisitions.

Along with revenues, we should also look at profitability metrics. In the next article, we’ll see what analysts are projecting for Nucor’s 4Q17 bottom line and compare it with the company’s guidance.