Nucor Corporation, a leading player in the steel industry, has announced its financial guidance for the second quarter ending June 29, 2024. The company anticipates earnings to fall within the range of $2.20 to $2.30 per diluted share, signaling a notable decrease compared to the first quarter of 2024, when Nucor reported net earnings of $3.46 per diluted share, and the second quarter of 2023, which saw earnings of $5.81 per diluted share.
The primary factor contributing to the projected earnings decline in the second quarter of 2024 is the reduced performance of Nucor's steel mills segment. This downturn is mainly attributed to lower average selling prices and, to a lesser extent, decreased volumes. The steel products segment is also expected to experience a decline in earnings compared to the first quarter of 2024, largely due to lower average selling prices, although this impact is partially mitigated by increased volumes.
On a more positive note, Nucor's raw materials segment is projected to witness higher earnings in the second quarter of 2024 compared to the previous quarter. This improvement is driven by the increased profitability of the company's direct reduced iron facilities, which have demonstrated strong performance.
Throughout the second quarter, Nucor has actively engaged in share repurchases, buying back approximately 2.9 million shares at an average price of $170.70 per share. This brings the year-to-date total to approximately 8.5 million shares repurchased at an average price of $177.30 per share. These repurchases, along with dividend payments, have allowed Nucor to return more than $1.76 billion to its stockholders so far this year.
NYSE: NUE
Price: $157.38
Change: + $2.69 (1.74%)
The stock is exhibiting an uptrend, trading above its 50-day moving average of $150.25 and its 200-day moving average of $145.68. The MACD indicator is signaling a bullish trend. The stock is facing resistance at $160.00 and finding support at $155.00. Fibonacci retracements suggest potential resistance at the 61.8% level of $158.42. The stock is trading within the Bollinger Bands, with the bands narrowing, indicating decreased volatility. Overall, the technical indicators suggest a bullish outlook for NUE shares in the near term, with potential for further upward movement, although investors should monitor key resistance levels and any changes in market sentiment.
