Nucor guides Q3 earnings well below Wall Street consensus

Nucor (NYSE:NUE) -2.1% pre-market Tuesday after warning of a large Q3 profit decline, as lower selling prices weighed on its steel mills business.

Nucor (NUE) said it expects adjusted earnings of $0.87-$0.97/share, well below $1.81 analyst consensus estimate, Q2 net earnings of $2.68 and year-earlier earnings of $4.57; including $123M in one-time impairment charges, or $0.43/share, adjusted EPS is projected at $1.30-$1.40.

The company said the largest driver for the expected earnings drop is weaker earnings in its steel mills segment, due primarily to lower average selling prices; it also expects lower earnings in its steel products and raw materials segments compared to Q2 due to lower average selling prices and lower volumes.

Nucor (NUE) had warned when providing guidance in July that it expects earnings would decline compared to Q2.