Nucor Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Nucor Corp (NYSE:NUE) will unveil its latest earnings on Thursday, July 21, 2011. Nucor Corporation and its affiliates manufacture steel and steel products for customers mainly located in North America. Investing in Commodities: Brazilian Steel Industry Nearing “Crisis”>>

Nucor Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 81 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 83 cents. Between one and three months ago, the average estimate moved down, but has risen from 78 cents during the last month. For the year, analysts are projecting profit of $2.74 per share, a rise of more than sixfold from last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 50 cents per share against the mean estimate of 35 cents. In the prior quarter, the company reported net loss of 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $5.17 billion in revenue this quarter, a rise of 23.1% from the year ago quarter. Analysts are forecasting total revenue of $19.61 billion for the year, a rise of 23.8% from last year’s revenue of $15.84 billion.

Analyst Ratings: Analysts are bullish on Nucor as seven analysts rate it as a buy, two rate it as a sell and six rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 41.4%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 69.3% from the year earlier quarter.

The company boosted its gross margin by 3.2 percentage points in the in the first quarter. Revenue rose 32.3% while cost of sales rose 27.7% to $4.4 billion from a year earlier.

Competitors to Watch: Steel Dynamics, Inc. (NASDAQ:STLD), AK Steel Holding Corp. (NYSE:AKS), United States Steel Corp. (NYSE:X), Universal Stainless & Alloy Products (NASDAQ:USAP), Grupo Simec S.A.B. de C.V. (AMEX:SIM), Gerdau SA (NYSE:GGB), Worthington Industries, Inc. (NYSE:WOR), Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), Friedman Industries (AMEX:FRD), and Evraz Highveld Steel & Vandium Ltd (HGVLY).

Stock Price Performance: During April 19, 2011 to July 15, 2011, the stock price had fallen $5.79 (-12.8%) from $45.28 to $39.49. The stock price saw one of its best stretches over the last year between March 16, 2011 and March 25, 2011 when shares rose for eight-straight days, rising 4% (+$1.74) over that span. It saw one of its worst periods between April 6, 2011 and April 13, 2011 when shares fell for six-straight days, falling 5.8% (-$2.76) over that span. Shares are down $3.59 (-8.3%) year to date.

(Source: Xignite Financials)

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