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Feb 28, 2023
Worthington Q3 2023 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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