Shares of
Nucor
were sliding in premarket trading after the steel manufacturer issued weak guidance for its third quarter.
Nucor (ticker: NUE) said Thursday it expects third-quarter earnings to land between $4.10 and $4.20 a share, below the $4.61 analysts had penciled in, according to FactSet. For its second quarter, it posted earnings of $5.81 a share.
The anticipated decline from the prior quarter can be traced to expected drops in multiple parts of the business, according to the release. Its steel mills and steel products segments are facing lower pricing and volumes, and its raw materials segment is grappling with tightening margins at its facilities and scrap processing operations.
Nucor stock was off 2.7% in premarket trading. Coming into Friday’s session, the shares have gained 26% this year.
Steelmakers began capturing investors’ attention last month after
United States Steel
(X) shared updates about a strategic review it had previously disclosed. On Aug. 13, the company said it was considering what to do next after receiving bids both for parts of the business and the whole company.
That being said, it doesn’t make sense for Nucor to bid, Barron’s wrote at the time, given the fact that it’s a nonunion operation and U.S. Steel workers are represented by the United Steelworkers.
The company is scheduled to report third-quarter earnings on Oct. 24 before the markets open.
Write to Emily Dattilo at [email protected]
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