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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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
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