06:25 AM EDT, 04/23/2024 (MT Newswires) -- Nucor's ( NUE ) stock dropped early Tuesday after the steel production company forecast for a sequential decrease in short-term profit, while its fiscal first-quarter results declined annually and trailed Wall Street's expectations.

Earnings for the second quarter are set to be lower than the prior three-month period, the company said late Monday. The consensus among analysts on Capital IQ is for normalized and GAAP per-share earnings of $3.55. For the quarter ended March 30, the company's EPS fell to $3.46 from $4.45 on a yearly basis, missing the Street's view for $3.66.

Shares of Nucor ( NUE ) have advanced 10% so far this year, but slipped 6.6% in premarket activity.

Lower average selling prices are anticipated to drag down earnings in each of the company's steel mills and products segments, partially offset by increased volumes. Profit in the raw materials division is expected to rise on a quarterly basis, benefiting from increased profitability of the firm's direct reduced iron facilities and scrap processing operations, according to Nucor ( NUE ).

The company's sales slid 7% to $8.14 billion in the first quarter, below analysts' estimate for nearly $8.3 billion. Average sales price per ton declined 3% year-on-year, while shipments moved down by the same percentage.

"Nucor's ( NUE ) performance continues to be strong even as steel market conditions have come off their post-pandemic record highs," Chief Executive Leon Topalian said in a statement. "We also took several bold steps to advance our growth, sustainability, and commercial strategies during the first quarter."

Earnings before income tax and non-controlling interests in the steel mill division jumped to $1.1 billion from $838.4 million in the 2023 quarter, due to price hikes and volume gains. Steel products earnings tumbled to $511.6 million from $970.8 million. Earnings in the raw materials segment plummeted to $9.6 million from $58.1 million last year.

Marketing, administrative and other expenses narrowed to $345.5 million from $389.9 million in the prior-year period, the company said.