Shares in Nucor (NYSE:NUE) fell slightly following the market open on Friday after the steelmaker’s guidance for the fiscal Q2 missed analyst expectations.
The company said it expects Q2 earnings per share (EPS) to be between $2.20 and $2.30, notably below the consensus estimate of $2.99.
Nucor stock dropped less than 1%.
“The largest driver for the expected decrease in earnings in the second quarter of 2024 as compared to the first quarter of 2024 is the decreased earnings of the steel mills segment, due primarily to lower average selling prices, and, to a lesser extent, lower volumes,” the company said in a press release.
Looking forward, Nucor did not offer any outlook commentary, however, due to ongoing steel pricing headwinds and seasonal summer lull, earnings “are likely to drift lower,” analysts at BMO Capital Markets said in a note.
“Overall, we reduce our estimates and lower our target price to $175,” they added.