How Nucor’s 1Q18 Earnings Estimates Compare with Its Guidance

Nucor’s 1Q18 earnings estimates

Analysts polled by Thomson Reuters expect Nucor (NUE) to post adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] of $704.0 million in 1Q18. The company posted adjusted EBITDA of $536.0 million in 4Q17 and $777.0 million in 1Q17.

Nucor is expected to post adjusted EPS (earnings per share) of $1.08 in 1Q18. In comparison, the company posted adjusted EPS of $0.58 in 4Q17 and $1.12 in 1Q17. Nucor recorded a one-time gain in its 4Q17 earnings after the passage of the tax bill.

How Nucor’s 1Q18 Earnings Estimates Compare with Its Guidance

Guidance

Like Steel Dynamics (STLD), Nucor provides quantitative earnings guidance about 15 days before a quarter ends. Among other steel companies, U.S. Steel Corporation (X) and Cleveland-Cliffs (CLF) provide their annual earnings guidance during their quarterly earnings calls. AK Steel (AKS) gives a qualitative earnings guidance during its earnings calls. Let’s take a look at Nucor’s 1Q18 guidance.

Key drivers

Nucor expects to post earnings per share of $1.00–$1.05 in 1Q18. The company sees strong underlying steel demand and higher steel prices as its key tailwinds in 1Q18. While releasing its 1Q18 guidance, Nucor cautioned that these positives are expected to be slightly offset by weather-related interruptions at some of its plants as well as higher scrap costs.

Steel companies’ 1Q18 earnings should also be closely watched for what their executives have to say on the US steel industry’s outlook after the toned-down Section 232 tariff implementation. In the final article in this series, we’ll look at the key updates that the markets might watch during steel companies’ 1Q18 calls.

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