Manufacturing Company Worthington Beats On Q2, Its Last Quarter As Worthington Industries
Portfolio Pulse from Shivani Kumaresan
Worthington Enterprises Inc (NYSE:WOR) reported Q2 FY24 sales of $1.086 billion, surpassing analyst estimates of $1.035 billion. The company recently spun off its Steel Processing business, Worthington Steel, Inc. (NYSE:WS), into a separate entity. The sales decline of 7.5% was mainly due to lower average selling prices in Steel Processing, partially offset by higher volumes. Gross profit rose 17% to $123.7 million, and the operating loss narrowed. Adjusted EPS of $0.78 beat estimates of $0.71. Worthington declared a quarterly dividend of $0.16 per share. WOR shares closed up 3.47% at $58.51.
December 20, 2023 | 11:46 am
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NEUTRAL IMPACT
Worthington Steel, Inc. has been spun off from Worthington Enterprises and is now a standalone public company.
The spinoff of WS is a structural change, and while it may not have an immediate impact on the stock price, it alters the investment profile of the company.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 50
POSITIVE IMPACT
Worthington Enterprises reported higher-than-expected Q2 sales and adjusted EPS, declared a dividend, and saw its shares rise 3.47%.
The positive earnings report and dividend declaration are likely to instill investor confidence and could lead to a continued uptrend in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100