Earnings Recap: Nucor Corp. (NYSE:NUE)

Nucor Corporation (NYSE:NUE) reported earnings for the three months ended Mar2016 on April 21, 2016. The company earned $0.22 per share on revenue of $3.72B. Analysts had been modeling earning per share of $0.27 with $3.64B in revenue.

Nucor’s first quarter of 2016 results include a charge of $27.5 million ($0.05 per diluted share) to value inventories using the last-in, first-out (LIFO) method of accounting. The charge is compared with a credit of $16.5 million ($0.03 per diluted share) in the first quarter of 2015 and a credit of $217.8 million ($0.41 per diluted share) in the fourth quarter of 2015. The LIFO charge taken in the first quarter of 2016 was above our quantitative guidance of $15.0 million ($0.03 per diluted share) as recent increases in scrap prices affected our estimate of expected inventory values at the end of 2016.  Also included in the first quarter of 2016 earnings are out-of-period non-cash gains totaling $13.4 million ($0.04 per diluted share) related to a noncontrolling interest adjustment and to tax adjustments.

Nucor’s consolidated net sales decreased 16% to $3.72 billion in the first quarter of 2016 from $4.40 billion in the first quarter of 2015 and increased 7% compared with $3.46 billion in the fourth quarter of 2015. Average sales price per ton in the first quarter of 2016 decreased 23% from the first quarter of 2015 and decreased 11% from the fourth quarter of 2015. Total tons shipped to outside customers were 6,148,000 tons in the first quarter of 2016, a 9% increase from the first quarter of 2015 and a 20% increase from the fourth quarter of 2015. Total first quarter steel mill shipments increased 16% from the first quarter of 2015 and increased 27% from the fourth quarter of 2015. First quarter downstream steel products shipments to outside customers decreased 1% from the first quarter of 2015 and decreased 6% from the fourth quarter of 2015.

Nucor Corporation earnings per share showed an increasing trend of 14.1% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 291%.Analysts project EPS growth over the next 5 years at 20.61%. It has EPS annual decline over the past 5 fiscal years of -5.89% when sales declined 0. It reported -15.5% sales drop, and 4.4% EPS growth in the last quarter.

The stock is trading at $48.51, up 44.25% from 52-week low of $33.9. The stock trades down -5.07% from its peak of $51.1 and 6.93% above the consensus price target of $51.87. Its volume clocked up at 2.36 million shares which is lower than the average volume of 2.68 million shares. Its market capitalization currently stands at $15.38B.