Steel Dynamics' Earnings Beat Estimates. What Will That Mean for Nucor?
Steelmaker Steel Dynamics (NASDAQ: STLD) reported second-quarter earnings that beat analyst estimates on the top and bottom lines, helped by capacity utilization rates that exceeded the company's expectations. The company said that construction-related demand held up reasonably well throughout the pandemic, and the reopening of economies has boosted customer demand, as well as scrap supply, which will help downstream operations' results.
The stronger utilization rates will likely be mirrored by rival Nucor (NYSE: NUE), as both operate with similar "mini-mill" business models. Nucor reports second-quarter earnings Thursday, July 23, and the Steel Dynamics report provides investors with a clue of what to expect.
Image source: Getty Images.
Source Fool.com
