NYSE$WOR

Worthington Enterprises Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported solid results despite inventory holding losses from falling steel prices, with a positive trend in rising steel prices and steady demand across end markets.

Worthington Industries reported Q3 fiscal year 2023 earnings of $0.94 per share, or $1.04 per share excluding unique items related to the planned business separation. Net sales were $1.1 billion, a 20% decrease from the prior year, while gross profit increased slightly to $144 million. The company is progressing well with its planned separation into two distinct companies, expected to be completed by early calendar 2024.

  • Q3 earnings were $0.94 per share, or $1.04 per share excluding separation-related expenses.
  • Net sales decreased by 20% to $1.1 billion due to lower average selling prices in Steel Processing.
  • Gross profit increased to $144 million, with a gross margin of 13%.
  • The company is on track with its planned separation into two companies, expected in early calendar 2024.

Headline financials

Total Revenue

$1.1B

Previous: $1.38B-19.9%
EPS (adj)

$1.04

Previous: $1.13-8.0%
Capital Expenditures

-$22.7M

Previous: -$23.6M+3.8%
Free Cash Flow

$23.6M

Previous: $32.7M-27.9%
Net Income

$46.3M

Previous: $56.3M-17.8%
Operating Income

$30.1M

Previous: $37.6M-20.0%
Gross Profit

$144M

Previous: $143M+0.5%
Cash & Equivalents

$267M

Previous: $44.3M+502.9%
Total Assets

$3.5B

Previous: $3.74B-6.4%

Revenue & EPS history

Worthington · Revenue · Quarterly

$1.1B

Q3 2023-19.9%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Worthington · $315M total across 2 segments · Q3 2023

  • Consumer Products
    $163M+0.6%
  • Building Products
    $152M+14.3%

Forward guidance

The company anticipates a swing to inventory holding gains in Q4, potentially offsetting the losses of $27 million in Q3. They expect sequential growth in both Consumer and Building Products businesses in Q4, which is a seasonally strong period.

Tailwinds

  • Anticipated inventory holding gains in Q4 to offset Q3 losses.
  • Expected sequential growth in Consumer Products due to strong seasonal demand.
  • Expected sequential growth in Building Products due to strong seasonal demand.
  • Positive outlook for the Steel Processing business with rising steel prices.
  • Benefits from government investment spending from the Inflation Reduction Act, Chips and Science Act, and Infrastructure Investment and Jobs Act.

Headwinds

  • Potential headwind for commercial construction projects due to higher interest rates.
  • Potential headwind for auto financing due to higher interest rates.
  • Uncertainty in the financial markets and its potential impact on the economy.
  • Volatility in supply chains and commodity prices.
  • Challenging operating environment in Europe for Sustainable Energy Solutions.

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 2023

Historical avgQ3 2023

-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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