Research Desk Line-up: Schnitzer Steel Industries Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Nucor Corp. (NYSE: NUE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NUE, following the Company's release of its third quarter fiscal 2017 operating results on October 19, 2017. The steel Company beat earnings estimates and provided its forecasts for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Steel & Iron industry. Pro-TD has currently selected Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) for due-diligence and potential coverage as the Company reported on October 24, 2017, its financial results for Q4 FY17 and FY17 which ended on August 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Schnitzer Steel Industries when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NUE; also brushing on SCHN. With the links below you can directly download the report of your stock of interest free of charge at:
For the thirteen Weeks ended September 30, 2017, Nucor reported consolidated net sales of $5.17 billion, reflecting growth of 21% compared to net sales of $4.29 billion in Q3 2016. The Company's revenue fell short of analysts' estimates of $5.28 billion.
Nucor reported consolidated net earnings of $268.5 million, or $0.83 per diluted share, for Q3 2017. By comparison, the Company reported consolidated net earnings $305.4 million, or $0.95 per diluted share, for Q3 2016. The Company's reported quarter earnings included net benefit totaling $13.2 million, or $0.04 per diluted share, related to tax return true-ups and state tax credits. Nucor's earnings topped Wall Street's expectations of $0.78 per share.
Nucor's Segment Details
During Q3 2017, Nucor's average sales price per ton increased 7% on a y-o-y basis. The Company's total tons shipped to outside customers were 6,618,000 tons in the reported quarter, up 12% compared to the year-ago corresponding period. For Q3 2017, Nucor's total steel mill shipments jumped 18% on a y-o-y basis, while downstream steel products shipments to outside customers rose 3% compared to the year-ago same period.
During Q3 2017, Nucor's average scrap and scrap substitute cost per ton used totaled $317, reflecting an increase of 26% compared to $252 in Q3 2016. Overall operating rates at the Company's steel mills decreased to 83% in the reported quarter compared to 74% in the prior year's same quarter. For Q3 2017, Nucor's total steel mill energy costs increased approximately $1 per ton compared to Q3 2016, primarily attributed to higher electricity unit costs.
Nucor stated that earnings before income taxes and non-controlling interests of its steel mills segment totaled $432.72 million in Q3 2017, down 27% on a y-o-y basis. The Company noted that despite high utilization rates at its sheet mills, continued pressure from imports prevented prices from keeping pace with increasing raw material costs. The profitability of Nucor's downstream steel products segment decreased in the reported quarter from the year-ago period due to margin compression resulting from higher steel prices.
During Q3 2017, the raw materials segment's performance decreased on a q-o-q basis, primarily due to Nucor Steel Louisiana experiencing unplanned outages for most of the reported quarter. The Company stated that the facility resumed operations on October 03, 2017 and is producing high-quality direct reduced iron (DRI).
As of September 30, 2017, Nucor had $1.6 billion in cash and cash equivalents and short-term investments and an untapped $1.5 billion revolving credit facility that does not expire until April 2021. During Q3 2017, the Company repurchased approximately 1.6 million shares of the Company's common stock for an average share price of $56.76.
On September 01, 2017, Nucor completed its acquisition of St. Louis Cold Drawn, Inc., a manufacturer of cold drawn rounds, hexagons, squares, and special sections that mainly serves the US and Mexican automotive and industrial markets. St. Louis Cold Drawn employs 125 people and has two manufacturing locations - one in St. Louis, Missouri; and the other in Monterrey, Mexico - that have a combined annual capacity of 200,000 tons. Nucor stated that the addition of these facilities increased the total capacity of the Company's cold-finished bar and wire facilities to more than 1.1 million tons annually and helps advance its goal of growing sales to automotive customers.
For Q4 2017, Nucor is forecasting earnings to be similar to slightly decreasing from Q3 2017, exclusive of the previously mentioned tax benefits recognized in the reported quarter. The Company is expecting improved performance by the raw materials segment driven by more consistent DRI production. The downstream steel products segment is also likely to benefit from margin improvement.
On Wednesday, October 25, 2017, the stock closed the trading session at $58.99, declining 1.32% from its previous closing price of $59.78. A total volume of 2.93 million shares have exchanged hands, which was higher than the 3-month average volume of 2.32 million shares. Nucor's stock price surged 9.06% in the last one month, 0.55% in the past three months, and 25.51% in the previous twelve months. The stock is trading at a PE ratio of 17.36 and has a dividend yield of 2.56%. The stock currently has a market cap of $18.90 billion.
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