CHARLOTTE, N.C. - Nucor Corporation (NYSE: NYSE:NUE) reported a robust second quarter with earnings and revenue that surpassed Wall Street's expectations.
The company announced an adjusted EPS of $2.68, which was $0.14 higher than the analyst estimate of $2.54. Revenue for the quarter also exceeded forecasts, coming in at $8.08 billion against the consensus estimate of $7.72 billion. Following the positive results, the company's stock saw a modest increase of 1.18%.
Compared to the same quarter last year, Nucor's net sales saw a 15% decline from $9.52 billion. The company attributes the decrease in earnings to softer market conditions compared to recent record-setting years. However, Nucor's Chair, President, and CEO, Leon Topalian, remains confident in the company's long-term growth strategy, noting, "Nucor's strategy to grow our core steelmaking operations and expand into steel-adjacent downstream markets positions the company to create attractive shareholder value and improve the company's through-cycle earnings profile."
Looking ahead, Nucor expects earnings in the third quarter of 2024 to decrease compared to the second quarter. The anticipated decline is primarily due to expected lower average selling prices in the steel mills segment. The steel products and raw materials segments are also projected to experience decreased earnings due to similar pricing pressures.
Despite the challenges, Nucor's financial strength remains solid, with $5.43 billion in cash and cash equivalents and short-term investments on hand at the end of the quarter. The company's commitment to returning capital to shareholders continues, with approximately $1.7 billion returned through June, including the repurchase of 2.9 million shares of its common stock and the declaration of a cash dividend of $0.54 per share.
Nucor's operational performance in the second quarter showed resilience, with overall operating rates at the company's steel mills decreasing to 75% from 82% in the first quarter of 2024 and 84% in the second quarter of 2023. The company's safety record was highlighted by Topalian, who expressed pride in achieving "the safest start to any year in Nucor's history."
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