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Nucor’s Q2 guidance miss not a game changer, BMO analyst says

Published 06/15/2017, 11:40 AM
Updated 06/15/2017, 11:40 AM
© Reuters.  Nucor’s Q2 guidance miss not a game changer, BMO analyst says
  • Nucor (NUE -6.1%) is now down ~6% after issuing below consensus Q2 earnings guidance and setting a cautious tone on hot-rolled steel pricing and nonresidential construction demand.
  • But BMO analyst David Gagliano says limited details from NUE's statement, the upcoming Section 232 decision and the company’s typically conservative approach to guiding implies the latest guidance is not a "game changer."
  • Sheet pricing weakness should not be a surprise, as pricing info was showing a similar trend throughout the quarter, Gagliano writes.
  • KeyBanc's Philip Gibbs says Steel Dynamics (STLD -5%), NUE’s direct peer, also likely will miss Q2 earnings forecasts due to more competitive conditions in the sheet steel spot market.
  • Also: AKS -4.8%, X -4.5%, CMC -4.6%, RS -3.5%.
  • Source: Bloomberg First Word
  • Now read: S&P 500 'Safer' Dividend Aristocrats Look Up To Nucor's Net Gains, Per Analyst May Targets


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