Nucor Issues Q3 Earnings Guidance Below Analyst Expectations Amid Rising Costs
Nucor Corporation (NYSE:NUE) issued third-quarter earnings guidance below Wall Street expectations, leading to a more than 3% drop in its shares during after-hours trading. The steelmaker projected earnings of $5.55 to $5.65 per share for Q3, which is higher than the previous year's $2.63 but lower than analysts' expected range around $6.20. Despite stronger average selling prices supporting parts of its business, Nucor anticipates rising product and corporate expenses that could limit earnings growth. The company expects improved performance in steel mills and products segments due to higher volumes and pricing, while the raw materials segment faces lower pricing and shipments. Nucor also highlighted risks from global overcapacity and imports, which can intensify competition and pressure prices during weaker demand periods. Additionally, hedge funds reduced their stakes with Berkshire Hathaway cutting its position by 53%, and short interest in NUE shares increased to about 1.81% of outstanding stock.
Tickers: $NUE
Topics: corporate expenses cost pressures pricing environment steel industry