Nucor Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Nucor (NYSE:NUE) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Nucor and its affiliates manufacture steel and steel products for customers mainly located in North America.

Nucor Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 29 cents per share, a decline of 21.6% 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 37 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 29 cents during the last month. Analysts are projecting profit to rise by 31.4% versus last year to $1.64.

Last quarter, the company came in at profit of 45 cents per share against a mean estimate of net income of 42 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 2 cents.

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A Look Back: In the third quarter, profit fell 39.2% to $110.3 million (35 cents a share) from $181.5 million (57 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 8.6% to $4.8 billion from $5.25 billion.

Here’s how Nucor Fourth traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

nue

Wall St. Revenue Expectations: Analysts predict a decline of 5.8% in revenue from the year-earlier quarter to $4.55 billion.

Analyst Ratings: With nine analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 0.1% in the second quarter and dropped again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.29 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.35 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.7% to $2.89 billion while assets rose 2.1% to $6.62 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)