Steel manufacturer Nucor Corporation says it expects to report earnings in a range of 50 to 55 cents per diluted share for the third quarter ending Oct. 3, according to a press release.

Nucor’s earnings guidance for 50 to 55 cents per diluted share is ahead of average analysts’ estimates of 38 cents per share.

The guidance also tops the company’s second-quarter earnings per share of 36 cents per share but is lower than the third quarter of 2019, which saw 90 cents per diluted share.

In the release, the company said its downstream products segment is expected to see an increase in earnings compared to the prior quarter, with the business “having another strong quarter due to the continued resiliency of nonresidential construction markets.”

The steel mills segment is expected to perform similarly to the second quarter. The company noted that its bar and structural mills “are benefitting from nonresidential construction markets while market conditions for our sheet and plate mills remain challenged.”

During the second quarter, Nucor’s sheet and plate mills were the most negatively impacted “due to weak oil and gas market activity and customer production disruptions.”

The raw materials segment is expected to decrease because of lower pricing for direct reduced iron (DRI).

Nucor saw a rise in demand and pricing for raw materials and sheet steel late in the third quarter, and utilization rates for the sheet mills have improved.

“We are cautiously optimistic about the impact these developments will have on the final quarter of the year,” the press release said.

Nucor (NUE) was last trading up 2.63 percent near $48.81 on Thursday.