Nucor (NYSE:NUE) offered a profit outlook for the fourth quarter that missed the average analyst estimate.
The company sees FQ4 EPS at $2.80, up or down 5 cents, easily ahead of the $3.11 expectations.
Shares fell 3.2% on the news.
“Earnings in the fourth quarter of 2023 are expected to decrease compared to the third quarter of 2023 due to lower pricing and volumes across all three operating segments,” the company said in a note.
In the steel products segment, lower earnings are expected due to moderating average selling prices across various product groups and reduced volumes.
Additionally, earnings in the raw materials segment are projected to decrease in Q4 2023 compared to the previous quarter, attributed to lower pricing for raw materials and planned outages at the Direct Reduced Iron (DRI) facilities.
The company especially highlighted particular weaknesses in sheet and plate.
“We expect a modest negative reaction as the miss is small and 4Q is often impacted by seasonal outages which aren’t fully captured in consensus,” analysts at Citi said.