Nucor Corporation (NUE), AK Steel Holding Corporation (AKS) & Steel Dynamics, Inc. (STLD): What the Steel Players Have to Say Now

Page 1 of 2

Steel players have seen their stock prices plummeting since June 17. The sharp decline in prices has not come without a reason; it has been the market’s reaction to the poor earnings pre-announcement by the steel companies for the second quarter.

For those who don’t follow steel players regularly, an earnings pre-announcement might seem like an awkward idea. However, this has remained a norm in the steel industry and has been a more powerful stock-price catalyst as compared to the actual earnings announcement. So what did the steel players have to say?

Nucor kicked off on a bad note

Nucor Corporation (NYSE:NUE)

Nucor Corporation (NYSE:NUEkicked off the 2Q earnings pre-announcement season with a soft mid-quarter update, indicating it expects 2Q operating EPS of between $0.25 and $0.30 vs. consensus of $0.39.

Nucor Corporation (NYSE:NUE) indicated performance in its upstream steel mills is down with weaker performance in sheet and structural steel. On a positive note, downstream segment results (Nucor Corporation (NYSE:NUE)’s fabricated construction-products businesses and raw materials) are expected to improve sequentially after the seasonal slowdown and outage at the Trinidad DRI facility, both of which occurred in 1Q. Nucor did flag that in 2013 non-residential construction markets continue to lack sustained momentum, but are slowly improving from historically low levels.

Nucor Corporation (NYSE:NUE)’s 2Q guidance suggests the potential for more downside than upside for 2013 even in a slow recovery scenario. Thus far there has been limited follow through in the form of meaningful results for the steel producers, including Nucor Corporation (NYSE:NUE), despite the encouraging signs earlier this year of improving construction-related demand. Instead lead times, prices, and margins remain relatively stagnant while 2H’13 earnings estimates still reflect expectations of a meaningful recovery.

What AK Steel had to say

AK Steel Holding Corporation (NYSE:AKS) has seen the largest decline by far in this period. This is understandable given the large disparity between what the market was forecasting and what the company estimates that it earned in the quarter. AK Steel Holding Corporation (NYSE:AKS) indicated it expects to report a loss of $0.33 per share to a loss of $0.38 per share in Q2’13, vs. the consensus of a loss of $0.08 per share only. Included in the expected Q2 loss range is a non-cash tax income tax expense of $11 million, or $0.08 per share, vs. the Street’s tax benefit estimate of $11 million (that is not a typo, the Street was estimating it to be a benefit whereas it turned out to be an expense).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!