Nucor's Q4 Guidance Misses The Mark, Hit By Steel Slowdown; Stock Slides
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2024
0mins
Source: Benzinga
Earnings Guidance: Nucor Corporation's fourth-quarter earnings per share (EPS) guidance is projected at $0.55 – $0.65, significantly lower than the consensus estimate of $0.86, primarily due to decreased volumes and lower average selling prices in the steel mills segment.
Share Repurchases and Financial Performance: The company has repurchased approximately 2.1 million shares in the fourth quarter, totaling 13.1 million shares for the year, while returning over $2.73 billion to shareholders through repurchases and dividends.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NUE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NUE
Wall Street analysts forecast NUE stock price to fall
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 194.420
Low
168.00
Averages
179.00
High
200.00
Current: 194.420
Low
168.00
Averages
179.00
High
200.00
About NUE
Nucor Corporation is a manufacturer of steel and steel products, with operating facilities in the United States, Canada and Mexico. The Company also produces and procures ferrous and non-ferrous materials primarily for use in its steel manufacturing business. Its segments include steel mills, steel products and raw materials. Its products include carbon and alloy steel in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. The Company, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cleveland-Cliffs Faces Challenges Amid Tariffs
- Tariff Impact: Cleveland-Cliffs' stock is negatively affected by tariffs, as the company has performed reasonably well under these conditions but still lags behind competitor Nucor, indicating its market disadvantage.
- Economic Activity Demand: Cramer highlighted that Cleveland-Cliffs needs more economic activity to improve its performance, suggesting that the current market environment continues to pose challenges for steel manufacturers, impacting their future growth potential.
- Competitor Performance: Compared to Nucor, Cleveland-Cliffs is underperforming, with Cramer explicitly stating he does not recommend the stock, emphasizing Nucor's operational superiority and suggesting investors should consider more promising alternatives.
- Investment Outlook: While Cleveland-Cliffs is seen as having investment potential, market analysts generally believe that certain AI stocks offer greater upside potential and carry less downside risk, reflecting a shift in market focus towards different sectors.
See More
Cleveland-Cliffs Shares Plunge 16.46% After Revenue Miss
- Earnings Miss: Cleveland-Cliffs reported Q4 2025 revenue of $4.3 billion, falling short of Wall Street's $4.6 billion estimate, resulting in a net loss exceeding $1.4 billion for the year, which contributed to a 16.46% drop in stock price.
- Surge in Trading Volume: The trading volume reached 55.2 million shares, approximately 238% above the three-month average of 16.3 million shares, indicating a strong investor reaction to the earnings report that may lead to further market volatility.
- Optimistic Future Outlook: Despite the losses, management expressed optimism for 2026, projecting steel shipments to rise by over 3% and implementing cost-cutting measures to improve margins, demonstrating the company's commitment to recovery amid challenges.
- Strategic Partnership Potential: Cleveland-Cliffs is in negotiations for a strategic partnership with South Korea's Posco Holdings, with expectations for a definitive agreement in the first half of 2026, as the CEO highlighted the seriousness and potential scale of this opportunity for future growth.
See More
Cleveland-Cliffs Reports Q4 Revenue Miss and Net Loss
- Earnings Miss: Cleveland-Cliffs reported Q4 revenue of $4.3 billion, falling short of Wall Street's $4.6 billion estimate, resulting in a full-year net loss exceeding $1.4 billion, which pressured the stock price significantly.
- Stock Volatility: The stock closed at $12.30 on Monday, down 16.46%, with trading volume reaching 55.2 million shares, about 238% above the three-month average, indicating strong investor reaction to the earnings report.
- Future Outlook: Management expressed optimism for 2026, forecasting steel shipments to rise by over 3% and implementing cost-cutting measures to improve margins, potentially supporting a recovery in stock price.
- Strategic Partnership Potential: Cleveland-Cliffs is in negotiations for a strategic partnership with South Korea's Posco Holdings, with a definitive agreement expected in the first half of 2026, highlighting the seriousness and potential scale of this opportunity as noted by the CEO.
See More
Cleveland-Cliffs Reports Disappointing Q4 Results Amid Optimism for 2026
- Disappointing Performance: Cleveland-Cliffs reported flat sales in Q4, failing to meet analysts' expectations for mid-single-digit growth, resulting in a 25% drop in stock price despite a 50% increase over the past six months.
- Loss Exceeds Expectations: The company's quarterly loss was greater than anticipated, although it showed improvement compared to the previous year, highlighting ongoing challenges amid a sluggish automotive market and weak Canadian demand.
- Optimistic Future Outlook: CEO Lourenco Goncalves noted improvements entering 2026, having signed multi-year contracts with major automotive customers, reduced unit costs, extended debt maturities, and lowered capital expenditures, indicating proactive measures to address challenges.
- Expected Shipment Growth: Cleveland-Cliffs anticipates a shipment volume increase of about 3.4% in 2026, aligning with Nucor's 5% growth forecast, suggesting a recovery in steel demand, while investors await further details on strategic partnerships.
See More
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
Warren Buffett Steps Down as CEO of Berkshire Hathaway
- Leadership Change: Warren Buffett's resignation as CEO of Berkshire Hathaway after over 65 years marks a significant turning point in the company's history, potentially impacting investor confidence and future strategic direction.
- Stock Sales Overview: Berkshire's recent stock sales totaled $12.5 billion, involving six stocks including Apple and Bank of America, indicating Buffett's cautious stance on high-valuation stocks, which may affect the company's short-term earnings performance.
- Investment Strategy Shift: In the third quarter, Berkshire allocated nearly $6.4 billion to stock purchases while adding $9.9 billion to short-term U.S. Treasury Bills, reflecting Buffett's concerns about market valuations and emphasis on liquidity, which could influence future investment decisions.
- Increased Cash Allocation: Currently, cash and Treasury Bills make up about one-third of Berkshire's total value, demonstrating Buffett's cautious approach to the current market environment, which may pose greater challenges for the company in finding viable investment opportunities.
See More
Cleveland-Cliffs Faces Challenges Amid Tariffs
- Tariff Impact: Cleveland-Cliffs' stock is negatively affected by tariffs, as the company has performed reasonably well under these conditions but still lags behind competitor Nucor, indicating its market disadvantage.
- Economic Activity Demand: Cramer highlighted that Cleveland-Cliffs needs more economic activity to improve its performance, suggesting that the current market environment continues to pose challenges for steel manufacturers, impacting their future growth potential.
- Competitor Performance: Compared to Nucor, Cleveland-Cliffs is underperforming, with Cramer explicitly stating he does not recommend the stock, emphasizing Nucor's operational superiority and suggesting investors should consider more promising alternatives.
- Investment Outlook: While Cleveland-Cliffs is seen as having investment potential, market analysts generally believe that certain AI stocks offer greater upside potential and carry less downside risk, reflecting a shift in market focus towards different sectors.
See More
Cleveland-Cliffs Shares Plunge 16.46% After Revenue Miss
- Earnings Miss: Cleveland-Cliffs reported Q4 2025 revenue of $4.3 billion, falling short of Wall Street's $4.6 billion estimate, resulting in a net loss exceeding $1.4 billion for the year, which contributed to a 16.46% drop in stock price.
- Surge in Trading Volume: The trading volume reached 55.2 million shares, approximately 238% above the three-month average of 16.3 million shares, indicating a strong investor reaction to the earnings report that may lead to further market volatility.
- Optimistic Future Outlook: Despite the losses, management expressed optimism for 2026, projecting steel shipments to rise by over 3% and implementing cost-cutting measures to improve margins, demonstrating the company's commitment to recovery amid challenges.
- Strategic Partnership Potential: Cleveland-Cliffs is in negotiations for a strategic partnership with South Korea's Posco Holdings, with expectations for a definitive agreement in the first half of 2026, as the CEO highlighted the seriousness and potential scale of this opportunity for future growth.
See More
Cleveland-Cliffs Reports Q4 Revenue Miss and Net Loss
- Earnings Miss: Cleveland-Cliffs reported Q4 revenue of $4.3 billion, falling short of Wall Street's $4.6 billion estimate, resulting in a full-year net loss exceeding $1.4 billion, which pressured the stock price significantly.
- Stock Volatility: The stock closed at $12.30 on Monday, down 16.46%, with trading volume reaching 55.2 million shares, about 238% above the three-month average, indicating strong investor reaction to the earnings report.
- Future Outlook: Management expressed optimism for 2026, forecasting steel shipments to rise by over 3% and implementing cost-cutting measures to improve margins, potentially supporting a recovery in stock price.
- Strategic Partnership Potential: Cleveland-Cliffs is in negotiations for a strategic partnership with South Korea's Posco Holdings, with a definitive agreement expected in the first half of 2026, highlighting the seriousness and potential scale of this opportunity as noted by the CEO.
See More
Cleveland-Cliffs Reports Disappointing Q4 Results Amid Optimism for 2026
- Disappointing Performance: Cleveland-Cliffs reported flat sales in Q4, failing to meet analysts' expectations for mid-single-digit growth, resulting in a 25% drop in stock price despite a 50% increase over the past six months.
- Loss Exceeds Expectations: The company's quarterly loss was greater than anticipated, although it showed improvement compared to the previous year, highlighting ongoing challenges amid a sluggish automotive market and weak Canadian demand.
- Optimistic Future Outlook: CEO Lourenco Goncalves noted improvements entering 2026, having signed multi-year contracts with major automotive customers, reduced unit costs, extended debt maturities, and lowered capital expenditures, indicating proactive measures to address challenges.
- Expected Shipment Growth: Cleveland-Cliffs anticipates a shipment volume increase of about 3.4% in 2026, aligning with Nucor's 5% growth forecast, suggesting a recovery in steel demand, while investors await further details on strategic partnerships.
See More
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
Warren Buffett Steps Down as CEO of Berkshire Hathaway
- Leadership Change: Warren Buffett's resignation as CEO of Berkshire Hathaway after over 65 years marks a significant turning point in the company's history, potentially impacting investor confidence and future strategic direction.
- Stock Sales Overview: Berkshire's recent stock sales totaled $12.5 billion, involving six stocks including Apple and Bank of America, indicating Buffett's cautious stance on high-valuation stocks, which may affect the company's short-term earnings performance.
- Investment Strategy Shift: In the third quarter, Berkshire allocated nearly $6.4 billion to stock purchases while adding $9.9 billion to short-term U.S. Treasury Bills, reflecting Buffett's concerns about market valuations and emphasis on liquidity, which could influence future investment decisions.
- Increased Cash Allocation: Currently, cash and Treasury Bills make up about one-third of Berkshire's total value, demonstrating Buffett's cautious approach to the current market environment, which may pose greater challenges for the company in finding viable investment opportunities.
See More
