Steelmaker Nucor (NUE) warned connected profits amid declining volumes astatine its alloy mills, a time aft alloy stocks rallied to defy a wide marketplace sell-off. Nucor banal plunged from adjacent a bargain constituent with rivals besides retreating.
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Nucor absorption targeted fourth-quarter net of $7.65-$7.75 per share. That would people a grounds quarter, up from $7.28 successful the 3rd 4th and, astatine the midpoint, a year-over-year summation of much than 490%. But analysts connected Wall Street were connected mean expecting $8.18, according to FactSet.
Earnings successful Nucor's alloy mills conception stay robust and should beryllium comparable to Q3 "despite little volumes caused by year-end seasonality," Nucor said successful a statement.
The caller connection Wednesday marked a downshift from Oct. 21. Nucor absorption said past it expects alloy mill conception nett to "improve" successful Q4 vs. Q3, driven by further net maturation astatine its expanse and sheet mills. The alloy mill conception generated 67% of full institution revenue, and 86% of full nett (before eliminations), successful the 3rd quarter.
Nucor continues to expect net to summation successful its alloy products unit, according to Wednesday's statement. And it continues to forecast that net volition autumn successful the earthy materials conception vs. Q3 owed to borderline compression astatine Nucor's nonstop reduced robust facilities.
"Demand continues to beryllium beardown successful astir of the extremity markets we serve," Nucor said Wednesday. "We are assured that 2022 volition beryllium different twelvemonth of beardown profitability."
The institution did not connection circumstantial Q4 EPS guidance during its astir caller net report, connected Oct. 21.
Nucor Stock, Steel Stocks
Shares of Nucor plunged astir 12% to 104.65 connected the stock marketplace today, tumbling beneath its 50-day line. Nucor banal roseate 2.5% Tuesday to concisely retake a 122.16 cup-with-handle buy point, but closed beneath the entry.
Among different alloy stocks, United States Steel (X) dropped 4.3% connected Wednesday, portion Cleveland-Cliffs (CLF) dived 7.6% and Steel Dynamics (STLD) mislaid 6.6%.
Steel stocks went connected a teardrop implicit the summer. Investors stake connected the pandemic headwinds easing and connected higher U.S. infrastructure spending nether President Joe Biden.
In September, Nucor announced plans for a $100 cardinal enlargement of a barroom mill, adding 600,000 tons of capacity. Nucor besides said it would physique a $2.7 cardinal expanse mill with a capableness of 3 cardinal tons.
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