The 10-second takeaway
For the quarter ended May 31 (Q4), Worthington Industries met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Worthington Industries reported revenue of $704.1 million. The seven analysts polled by S&P Capital IQ expected a top line of $699.6 million on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $755.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.52. The eight earnings estimates compiled by S&P Capital IQ predicted $0.65 per share. Non-GAAP EPS of $0.52 for Q4 were 29% lower than the prior-year quarter's $0.73 per share. GAAP EPS of $0.46 for Q4 were 39% lower than the prior-year quarter's $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 15.8%, 30 basis points worse than the prior-year quarter. Operating margin was 5.8%, 210 basis points worse than the prior-year quarter. Net margin was 4.8%, 210 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $694.0 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $2.77 billion. The average EPS estimate is $2.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 138 members out of 158 rating the stock outperform, and 20 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Worthington Industries a green thumbs-up, and three 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 $31.00.
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