Nucor (NUE) Q2 EPS Guidance Tops Consensus

June 16, 2021 9:03 AM EDT

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Nucor Corporation (NYSE: NUE) today announced guidance for its second quarter ending July 3, 2021. Nucor expects second quarter earnings to be in the range of $4.60 to $4.70 per diluted share. Second quarter of 2021 earnings are expected to be the highest quarterly earnings in Nucor history, surpassing the previous record set in the first quarter of 2021 of $3.10 per diluted share.

(Consensus sees Q2 EPS of $4.52)

Included in the second quarter of 2021 guidance range is an estimated $42 million (approximately $0.11 per diluted share) non-cash impairment charge related to our leasehold interest in unproved oil and natural gas properties.

All three operating segments are continuing to generate robust profitability as overall strong demand is supporting higher average selling prices. Earnings of the steel mills segment are expected to improve in the second quarter of 2021 as compared to the first quarter of 2021, primarily driven by the significant increase in profitability of our sheet and plate mills. The steel products segment's earnings in the second quarter of 2021 are also expected to increase from the first quarter of 2021. After setting a new record for segment earnings in the first quarter of 2021, earnings from the raw materials segment are expected to decrease in the second quarter of 2021.

We believe that these strong market conditions will continue in the third quarter. The profitability of the steel products segment is expected to significantly improve as compared to the second quarter, and we expect increased earnings from the steel mills segment in the third quarter as well.

During the second quarter, Nucor has repurchased 6.7 million shares at an average price of $90.80 per share (12.1 million shares year-to-date at an average price of $75.43 per share). Nucor has returned more than $1.10 billion to stockholders in the form of share repurchases and dividend payments year-to-date.

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