Nucor Beats Estimates Yet Again

Seth Jayson, The Motley Fool
Updated

Nucor (NYS: NUE) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nucor beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share expanded.

Margins expanded across the board.

Revenue details
Nucor logged revenue of $4.83 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $4.77 billion. Sales were 25% higher than the prior-year quarter's $3.85 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.37. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share on the same basis. GAAP EPS were $0.43 for Q4 compared to -$0.04 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 7.6%, 420 basis points better than the prior-year quarter. Operating margin was 5.4%, 460 basis points better than the prior-year quarter. Net margin was 2.8%, 310 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.18 billion. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $20.96 billion. The average EPS estimate is $3.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,150 members out of 2,231 rating the stock outperform, and 81 members rating it underperform. Among 646 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 631 give Nucor a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nucor is outperform, with an average price target of $44.92.

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At the time thisarticle was published Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdingshere. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.Motley Fool newsletter serviceshave recommended buying shares of Nucor. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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