Nucor's Q2 Earnings Beat Expectations, But Analyst Warns of Weaker Q3 Due to Lower Steel Prices
Portfolio Pulse from Lekha Gupta
Nucor Corporation (NYSE:NUE) reported better-than-expected Q2 earnings, but analysts warn of weaker Q3 due to lower steel prices. Nucor's Q2 earnings per share were $2.68, beating the estimate of $2.35, and sales were $8.08 billion, surpassing the $7.69 billion estimate. However, lower average selling prices are expected to impact Q3 earnings. KeyBanc analyst Philip Gibbs notes weaker earnings guidance for Steel Products and Raw Materials. Investors can gain exposure via VanEck Steel ETF (NYSE:SLX) and Carbon Collective Climate Solutions U.S. Equity ETF (NASDAQ:CCSO).
July 23, 2024 | 6:58 pm
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NEGATIVE IMPACT
Carbon Collective Climate Solutions U.S. Equity ETF (NASDAQ:CCSO) may see some impact from Nucor's (NUE) weaker Q3 guidance. While not as directly tied to steel prices, NUE's performance can still influence the ETF.
Although Carbon Collective Climate Solutions U.S. Equity ETF (CCSO) is not as directly tied to steel prices, Nucor's performance can still influence the ETF. The weaker Q3 guidance from Nucor may have a minor negative impact.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEGATIVE IMPACT
Nucor Corporation (NYSE:NUE) reported strong Q2 earnings but anticipates weaker Q3 due to lower steel prices. Q2 EPS was $2.68, beating the $2.35 estimate, and sales were $8.08 billion, surpassing the $7.69 billion estimate. Analysts warn of weaker earnings in Q3.
Despite strong Q2 earnings, the anticipation of weaker Q3 due to lower steel prices is likely to negatively impact NUE's stock price in the short term. Analysts' warnings and lower future earnings guidance contribute to this negative outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
VanEck Steel ETF (NYSE:SLX) may be impacted by Nucor's (NUE) weaker Q3 guidance due to lower steel prices. Nucor is a significant component of the ETF, and its performance can influence SLX's overall performance.
Nucor's weaker Q3 guidance due to lower steel prices could negatively impact the VanEck Steel ETF (SLX), as Nucor is a significant component of the ETF. The ETF's performance is closely tied to the performance of its holdings.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50