NEW YORK - Nucor Corporation (NYSE: NUE ) shares dropped 2% after the steel producer issued fourth-quarter earnings guidance that fell short of analyst expectations, signaling challenges in its core steel business.

Nucor expects fourth-quarter earnings to be between $0.55 and $0.65 per diluted share, significantly below the Bloomberg consensus estimate of $0.93 and Visible Alpha consensus of $0.89.

This guidance also represents a sharp decline from the $1.05 per diluted share reported in the third quarter of 2024 and $3.16 per diluted share in the fourth quarter of 2023.

The company attributed the projected earnings decrease primarily to lower performance in its steel mills segment, citing reduced volumes and lower average selling prices.

Nucor also anticipates a decline in earnings for its steel products segment due to decreased volumes and lower average selling prices in the fourth quarter compared to the third quarter.

"The largest driver for the expected decrease in earnings in the fourth quarter of 2024 is the decreased earnings of the steel mills segment caused by decreased volumes and lower average selling prices," Nucor stated in its press release.

Despite the challenging outlook, Nucor reported that its raw materials segment is expected to show improved earnings in the fourth quarter compared to the third quarter, excluding a non-cash impairment charge taken during the third quarter.

The company has been active in returning value to shareholders, repurchasing approximately 2.1 million shares at an average price of $149.81 per share during the fourth quarter.

Year-to-date, Nucor has repurchased about 13.1 million shares at an average price of $168.75 per share and has returned more than $2.73 billion to stockholders through share repurchases and dividend payments.

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