NYSE$WOR

Worthington Enterprises Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong financial performance despite operating environment challenges and inventory holding loss headwinds.

Worthington Industries reported a strong Q3 performance with net sales significantly up due to higher steel prices and recent acquisitions. EPS was $1.11, compared to $1.27 in the prior-year quarter. The company faced inventory holding losses but saw increased sales and managed to navigate a volatile market effectively.

  • Net sales increased significantly to $1.4 billion, driven by higher steel prices, acquisitions, and increased selling prices.
  • Earnings per share (EPS) was $1.11, compared to $1.27 in the prior-year quarter.
  • The company experienced inventory holding losses of $25 million, impacting gross profit and adjusted EBITDA.
  • Demand remains strong across most product lines, but operating challenges persist, including labor, supply chain, and steel price volatility.

Headline financials

Total Revenue

$1.38B

Previous: $759M+81.6%
EPS (adj)

$1.13

Previous: $1.36-16.9%
Capital Expenditures

-$23.6M

Previous: -$16.4M-44.4%
Free Cash Flow

$32.7M

Previous: $51.2M-36.2%
Net Income

$56.3M

Previous: $67.6M-16.7%
Operating Income

$37.6M

Previous: $49.8M-24.4%
Gross Profit

$143M

Previous: $164M-12.8%
Cash & Equivalents

$44.3M

Previous: $650M-93.2%
Total Assets

$3.74B

Previous: $3.14B+19.1%

Revenue & EPS history

Worthington · Revenue · Quarterly

$1.38B

Q3 2022+81.6%vs Q3 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Worthington · $295M total across 2 segments · Q3 2022

  • Consumer Products
    $162M
  • Building Products
    $133M

Forward guidance

The business environment continues to be very challenging. The company is well positioned for whatever the market brings next.

Tailwinds

  • End market demand remains strong across most product lines.
  • Commercial, purchasing, and supply chain teams have effectively reacted to higher input costs with price increases.
  • Experts in steel processing continue to manage through volatility without compromising customer quality and service.
  • Benefit of higher selling prices was particularly noticeable in the year-over-year improvement in consumer products and building products.
  • Committed to adopt science-based targets for greenhouse gas emissions.

Headwinds

  • Operating challenges remain, including labor availability, supply chain disruptions, transportation shortages, and an extremely volatile steel pricing environment.
  • Sustainable energy solutions is struggling due to lower automotive demand in Europe and higher input costs.
  • European market remains challenged and the ongoing war in Ukraine has caused business conditions in Europe to deteriorate further with materially increased energy prices and demand uncertainty.
  • Expect higher inventory holding losses in Q4 than in Q3.
  • ClarkDietrich's business to gradually return to more normalized levels in 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.8%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+23.8%

Q3 2025

Best reaction

-22.3%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-5.6%+1.8%
Q2 2026-2.3%-6.2%-5.1%
Q1 2026-11.8%-9.2%-2.9%
Q4 2025+0.0%+2.6%+0.1%
Q3 2025+23.8%+20.3%+19.5%
Q2 2025+8.9%+5.4%+8.1%
Q1 2025-4.0%-8.3%-13.3%
Q4 2024-5.5%-7.7%-2.3%
Q3 2024+6.5%-0.9%-8.8%
Q2 2024-0.7%-0.1%-5.7%
Q1 2024-10.0%-9.6%-11.1%
Q4 2023+10.5%+11.3%+18.6%
Q3 2023+18.0%+18.5%+15.3%
Q2 2023-3.5%-3.7%+3.9%
Q1 2023-22.3%-8.1%-4.6%
Q4 2022+14.8%+13.8%+10.1%
Q3 2022-13.6%-17.7%-13.3%
Q2 2022+1.1%-0.5%+14.0%
Q1 2022-5.4%-0.8%-2.5%
Q4 2021+3.3%+2.6%+5.8%
Q3 2021+2.9%+3.4%+3.8%
Q2 2021-6.5%-6.4%+7.0%
Q1 2021+1.6%+8.6%+34.7%
Q4 2020-2.1%+6.7%+7.3%
Q3 2020+6.3%+15.9%+4.0%
Q2 2020+10.0%+8.1%+3.2%
Q1 2020-4.8%-2.3%-2.3%
Q4 2019+4.6%+8.3%+9.7%
Q3 2019+2.4%-6.3%+8.6%
Q2 2019-5.7%-5.1%+2.3%
Q1 2019-8.9%-5.4%-13.6%
Q4 2018-9.3%-6.8%+0.6%
Q3 2018-2.4%-0.6%+11.9%
Q2 2018+2.4%+1.7%+9.9%
Q1 2018-9.3%-7.4%-7.5%
Q4 2017+5.3%+3.8%+6.9%
Q3 2017-8.5%-11.9%-13.4%
Q2 2017-6.8%-11.0%-15.0%
Q1 2017+6.7%+8.9%+5.0%
Q4 2016+14.5%+13.7%+19.9%
Q3 2016-3.2%
Q2 2016+9.2%
Q1 2016+15.3%
Q4 2015+6.3%
Q3 2015-9.3%
Q2 2015-15.1%
Q1 2015-3.7%
Q4 2014+1.4%
Q3 2014-7.0%
Q2 2014-2.9%
Q1 2014+1.4%
Q4 2013-2.0%
Q3 2013+1.5%
Q2 2013+0.9%
Q1 2013-1.9%
Q4 2012+16.1%
Q3 2012+4.5%
Q2 2012+3.5%
Q1 2012-6.7%
Q4 2011-3.0%
Q4 2009-3.0%
Q3 2011-2.7%
Q3 2010-2.7%
Q2 2011+1.1%
Q2 2010+1.1%
Q1 2011-0.4%
Q1 2010-0.4%
Q4 2010-0.4%

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