Nucor (NUE) Q4 EPS Guidance Tops Consensus

Nucor Corporation (NYSE: NUE) today announced guidance for its fourth quarter ending December 31, 2020. Nucor expects fourth quarter earnings to be in the range of $1.15 to $1.20 per diluted share. Third quarter of 2020 earnings were $0.63 per diluted share and fourth quarter of 2019 earnings were $0.35 per diluted share.

(*Consensus sees Q4 EPS of $1.06)

Expected fourth quarter of 2020 earnings include a net benefit totaling $39.7 million, or $0.13 per diluted share, related to state tax credits. Included in earnings for the third quarter of 2020 was a restructuring charge of $16.4 million, or $0.04 per diluted share, related to the realignment of Nucor's metal buildings business. Included in the fourth quarter of 2019 earnings were non-cash impairment charges of $66.9 million, or $0.17 per diluted share.

Earnings in the fourth quarter of 2020 are improving compared to the third quarter of 2020 primarily due to higher pricing at our sheet and plate mills. Reflecting our product diversity, our steel mills segment also continues to benefit from strong results at our bar and structural mills. The steel products segment's earnings in the fourth quarter of 2020 are expected to decrease modestly from the third quarter of 2020 consistent with typical seasonality. The profitability of the raw materials segment is expected to increase in the fourth quarter of 2020 as compared to the third quarter of 2020 due to the improved financial performance of our DRI facilities that are benefitting from higher prices for raw materials.

The ongoing COVID-19 pandemic continues to cause uncertainty, making it difficult to forecast future market conditions and demand trends. However, the beneficial impact of recent price increases on our sheet mills' performance, as well as the strength of our backlogs and overall lead times, indicates that the current quarter's momentum will continue into the first quarter of 2021.

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