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Rampage of Q1 Earnings Results: NUE, PM, DHR, SHW


Thursday, April 20, 2017

Q1 earnings results rampage on in the pre-market today, on the back half of the first heavy week of earnings season. In fact, so many notable companies are currently reporting results that, in the interest in relative brevity, we will keep our quick-hit analysis to Zacks Rank Buys (#1 or #2). If there are companies reporting today you didn’t see being reviewed here, scroll to the bottom for links to those articles elsewhere on Zacks.com.

Steel maker Nucor Corp. NUE posted a big surge in earnings results for Q1 2017, related to 89% growth in steel mill operating rates in the quarter. Consolidated net sales increased 22% quarter over quarter. Beating earnings estimates is nothing new for the Zacks Rank #1 (Strong Buy) company, which has beaten consensus bottom-line estimates for at least the past 5 quarters straight. Construction and manufacturing in the U.S. has clearly assisted Nucor’s quarterly strength, and shares of NUE are trading u 2.4% thus far in the pre-market.

Cleveland, OH-based Sherwin Williams SHW, a Zacks Rank #2 (Buy) company that makes basic building materials such as house paint, put up arguably the strongest numbers of the morning, reporting $2.53 per share on $2.76 billion, both of which beat Zacks consensus estimates in Q1. In fact, the company’s earnings beat the estimated $2.07 per share by 22%, much higher than the trailing 4 quarter average of earnings surprise, which is +2.8%. Q2 guidance was ratcheted a bit lower, however, though new fiscal 2017 guidance remains toward the higher side of the range. SHW shares are up 3.7% in today’s pre-market.

Tobacco products producer Philip Morris PM is also a Zacks Rank #2 stock (along with a Zacks Style score of B, also shared by Sherwin Williams), but earnings of $1.02 in Q1 missed estimates by a penny. This still represents 4% growth year over year, although total tobacco unit shipments fell 9.4% year over year. This is the second straight quarter of a bottom-line miss for Philip Morris, and shares ahead of the bell have dipped nearly 4% so far today.

Industrial products supplier Danaher DHR put up mixed results for its Q1 this morning, beating top line estimates narrowly to $4.2 billion on a big bottom-line miss of 69 cents per share, far lower than the 84 cents in the Zacks consensus as well as an 18% drop year over year. Danaher’s CEO attributes this at least partly to long-term reinvestment strategies for the Washington, DC-based firm. This is the first quarter in the last 5 that Danaher has failed to beat earnings expectations.

Other earnings articles to check out:

Verizon Lags Q1 Earnings, Revenues

Travelers Q1 Earnings Miss, Revenues Beat

BB&T Beats Q1 Earnings on Higher Revenues, Costs Rise

Mark Vickery
Senior Editor

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