The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Worthington Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded.
Margins shrank across the board.
Worthington Industries notched revenue of $611.3 million. The six analysts polled by S&P Capital IQ expected to see a top line of $590.7 million on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $569.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The seven earnings estimates compiled by S&P Capital IQ forecast $0.35 per share. GAAP EPS of $0.37 for Q3 were 5.7% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.6%, 190 basis points worse than the prior-year quarter. Operating margin was 3.4%, 160 basis points worse than the prior-year quarter. Net margin was 4.2%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $677.9 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $1.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 131 members out of 155 rating the stock outperform, and 24 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Worthington Industries a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Worthington Industries is hold, with an average price target of $18.19.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.