NU

Nucor Corporation stock research

Jun 29, 2024

FY2024 Q2

Nucor (NUE) Gross Margin — Quarter Ended Jun 29, 2024

Revenue was stable compared to the prior quarter but lower than the same quarter last year. Gross profit and gross margin weakened both sequentially and year over year as cost of revenue increased relative to revenue.

Gross margin takeaway

Quarter ended Jun 29, 2024 · FY2024 Q2

Revenue was stable compared to the prior quarter but lower than the same quarter last year. Gross profit and gross margin weakened both sequentially and year over year as cost of revenue increased relative to revenue.

  • The decline in gross margin is primarily attributed to a sequential increase in cost of revenue while revenue remained unchanged, leading to a lower gross profit.
  • Compared to the prior quarter, gross margin weakened from a higher level. Versus the same quarter a year ago, gross margin was significantly lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

14.8%

Gross profit

$1.2B

Revenue

$8.1B

Cost of revenue

$6.9B

Quarter-over-quarter change

-3.9 pts

Year-over-year change

-11.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 1, 2023$9.5B$2.5B$7.0B26.3%
Sep 30, 2023$8.8B$1.9B$6.9B21.9%
Mar 30, 2024$8.1B$1.5B$6.6B18.7%
Jun 29, 2024$8.1B$1.2B$6.9B14.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 30, 2024

-3.9 pts

Year-over-year change

Jul 1, 2023

-11.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The decline in gross margin is primarily attributed to a sequential increase in cost of revenue while revenue remained unchanged, leading to a lower gross profit.

Compared to the prior quarter, gross margin weakened from a higher level. Versus the same quarter a year ago, gross margin was significantly lower.

Monitor cost of revenue trends as they increased sequentially and remain elevated relative to revenue.

NUE Gross Margin — Quarter Ended Jun 29, 2024