Steelmaker Nucor's stock extends selloff after a profit warning
By Tomi Kilgore
Q2 EPS warnings comes after Nucor missed profit forecasts in Q1 for just the second time in nearly 5 years
Shares of Nucor Corp. were headed for another selloff on Friday, after the steel and steel-products maker warned of a second-quarter earnings shortfall, citing weakness in its steel mills business.
The downbeat earnings outlook comes after the company reported first-quarter profit that fell below expectations, marking the first miss in six quarters and just the second miss in 19 quarters.
The stock (NUE) dropped 1.7% toward a sixth straight loss, and a seven-month low, in premarket trading.
The company said it expects earnings per share for the current quarter of $2.20 to $2.30, down from $5.81 in the same period a year ago, and well below the current FactSet EPS consensus of $3.00.
The company said the primary reasons for the weakness in steel mills' earnings were lower average selling prices and lower shipment volumes.
The steel products business is also expected to see earnings fall from last year, as lower average selling prices were only partially offset by higher volumes.
In the first quarter, the steel mills segment's earnings showed strength, due to increases in prices and volumes, while steel products saw earnings fall as both prices and volumes declined.
Nucor's stock has dropped 11.5% year to date through Thursday, while the S&P 500 has rallied 13.9%.
-Tomi Kilgore
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06-14-24 0826ET
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