Despite Weak Q4 Outlooks, Steel Stocks Higher As Investors Look to the Future
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Price: $240.48 -3.32%
Financial Fact:
Marketing, administrative and other expenses: 169.22M
Today's EPS Names:
EDXC, BICX, FBPI, More
Financial Fact:
Marketing, administrative and other expenses: 169.22M
Today's EPS Names:
EDXC, BICX, FBPI, More
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The steel sector is blowing off lower guidance this morning from two big names in the sector, Nucor Corporation (NYSE: NUE) and Steel Dynamics Inc. (Nasdaq: STLD), and instead looking to positive comments about the future.
Nucor sees a Q4 loss of $0.10 - $0.15 per share, compared to the consensus EPS of $0.04. Steel Dynamics see Q4 EPS of $0.05 - $0.10, versus the consensus of $0.12.
Nucor said residential and non-residential construction continue to be the most challenging markets with "little, if any, strength." The company also said results were impacted by significant increases in scrap prices and the inability to realize sales price increases quickly. On the positive side, utilization rates are improving as they progress through the fourth quarter. The company has also been able to significantly raise prices for all steel mill products over the last 30 to 45 days. These increases are expected to have a positive impact during the first quarter.
Steel Dynamic said sheet operations order entry and pricing have increased significantly, but were negatively impacted early in the quarter by reduced volumes and pricing.
Both stocks are solidly higher. Nucor +0.5%, Steel Dynamics +2.3%.
Also in the sector other names are higher: United States Steel Corp. (NYSE: X) +1.7%, AK Steel (NYSE: AKS) +2%.
Nucor sees a Q4 loss of $0.10 - $0.15 per share, compared to the consensus EPS of $0.04. Steel Dynamics see Q4 EPS of $0.05 - $0.10, versus the consensus of $0.12.
Nucor said residential and non-residential construction continue to be the most challenging markets with "little, if any, strength." The company also said results were impacted by significant increases in scrap prices and the inability to realize sales price increases quickly. On the positive side, utilization rates are improving as they progress through the fourth quarter. The company has also been able to significantly raise prices for all steel mill products over the last 30 to 45 days. These increases are expected to have a positive impact during the first quarter.
Steel Dynamic said sheet operations order entry and pricing have increased significantly, but were negatively impacted early in the quarter by reduced volumes and pricing.
Both stocks are solidly higher. Nucor +0.5%, Steel Dynamics +2.3%.
Also in the sector other names are higher: United States Steel Corp. (NYSE: X) +1.7%, AK Steel (NYSE: AKS) +2%.
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