Worthington Steel Q3 revenue rises, partly driven by higher prices
Overview
U.S. metals processor's fiscal Q3 revenue grew 12% yr/yr
Adjusted EPS for fiscal Q3 declined yr/yr
Outlook
Worthington Steel expects Kloeckner acquisition to close in H2 2026, pending regulatory approvals
Result Drivers
DIRECT VOLUME AND PRICING - Revenue growth was driven by a 4% increase in direct tons sold and a 9% rise in average direct selling prices
TOLL VOLUME DECLINE - Toll volumes fell 22%, due to the closure of the Cleveland-area WSCP facility
HIGHER SG&A EXPENSES - Operating income was pressured by a $22.9 mln increase in SG&A expenses, mainly from $15.4 mln in professional fees related to the proposed Kloeckner acquisition
Company press release: ID:nBw21t0dFa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $769.8 mln | $882.95 mln (2 Analysts) |
Q3 Adjusted EPS | Miss | $0.27 | $0.43 (2 Analysts) |
Q3 EPS |
| $0.20 |
|
Q3 Net Income |
| $10.4 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Worthington Steel Inc is $46.00, about 35.6% above its March 24 closing price of $33.93
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
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