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What: Shares of metals manufacturer Worthington Industries, (NYSE:WOR) went on a wild ride today, climbing 14% in early trading before falling to a 3% gain near the close of trading.
So what: The driver of today's move was fiscal second-quarter earnings, which showed a 24% increase in revenue, to $769.9 million, and a 28% drop in profit, to $23.0 million. But the drop in profit was in large part due to writing down assets related to rebranding. When you pull those costs out, earnings were $0.57 per share, $0.03 ahead of estimates.
Now what: Results were strong for Worthington, driven by the Steel Processing and Pressure Cylinders businesses. I'm most impressed by the earnings growth and, if the company can keep costs in check going forward, this could be a great value. Shares trade at 18.6 times earnings, which isn't bad. If they fall further in the coming weeks, this could be a great value stock as the economy improves.
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