Earnings Review and Free Research Report: Worthington’s Q4 Top-line Rode Higher Selling Price; Surged 18% Y-o-Y

LONDON, UK / ACCESSWIRE / July 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Worthington Industries, Inc. (NYSE: WOR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=WOR, following the Company’s disclosure of its financial results for the fourth quarter fiscal 2017 (Q4 FY17) and full year 2017 (FY17) on June 28, 2017. The Columbus, Ohio-based Company’s quarterly net sales rose 18% y-o-y. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

In Q4 FY17, Worthington’s net sales increased to $845.34 million from $714.67 million recorded at the end of Q4 FY16. Net sales numbers for Q4 FY17 topped market consensus estimates of $786 million. The increase in quarterly net sales is primarily attributed to higher average selling prices.

The metal manufacturer’s net earnings attributable to controlling interest came in at $56.49 million, or $0.87 per diluted share, in Q4 FY17 from $58.52 million, or $0.92 per diluted share, in the prior year’s comparable quarter. Meanwhile, Wall Street had expected the Company to report net earnings of $0.83 per diluted share.

For FY17, the Company posted net sales of $3.01 billion, up 7% from $2.82 billion in FY16. The Company’s FY17 net earnings attributable to controlling interest increased to $204.52 million, or $3.15 per diluted share, from $143.72 million, or $2.22 per diluted share, in FY16.

Operational Metrics

In the quarter ended on May 31, 2017, Worthington’s gross margin improved to $154.83 million from $134.48 million in the year ago same period. The Company’s improved gross margin was due to higher shipments and favorable spreads in Steel Processing and improvements in certain Pressure Cylinders businesses.

For Q4 FY17, operating income came in at $70.86 million versus $54.01 million reported in the year ago comparable period. The rise of operating income by $16.8 million y-o-y was attributed to gross margin growth and was partially offset by higher SG&A expense, due to higher profit sharing and bonus expense and transaction costs incurred in connection with the June 02, 2017, acquisition of Amtrol.

Segment Performance

Worthington’s Steel Processing segment’s net sales for Q4 FY17 surged 25% to $582.22 million from $466.02 million reported in Q4 FY16. The segment’s Q4 FY17 operating income rose to $54.23 million from $40.43 million in Q4 FY16 on direct volume and a favorable pricing spread, which benefited from significantly higher inventory holding gains than the prior year’s same quarter.

The Company’s Pressure Cylinders segment’s net sales had increased by 6% in Q4 FY17 to $231.54 million from $218.61 million in Q4 FY16. The segment’s reported operating income also increased to $18.62 million in Q4 FY17 from $12.90 million recorded in Q4 FY16, primarily due to improvements in the oil & gas equipment business, partially offset by a decline in the alternative fuels business.

Engineered Cabs segments’ net sales improved 2% during the reported period to $29.80 million from $29.08 million in Q4 FY16. Meanwhile, the segment’s operating loss narrowed down to $0.46 million in Q4 FY17 from operating loss of $1.70 million in the year ago corresponding quarter due to lower restructuring charges and the favorable impact of higher volume.

Cash Matters and Balance Sheet

In Q4 FY17, the Company’s cash flow from operations was $80.76 million compared to $117.52 million in last year’s same quarter. The Company had cash and cash equivalents balance of $278.08 million on May 31, 2017, which was above $84.19 million as on close of books on May 31, 2016. The Company ended the reported quarter with long-term debt of $571.80 million, marginally down from $577.49 million from May 31, 2016.

Dividend

In a separate press release on June 28, 2017, the Company’s Board of Directors increased the quarterly dividend by $0.01 per share in the prior quarter to $0.21 per share, which will be payable on September 29, 2017, to shareholders of record September 15, 2017. The upcoming dividend payment would mark Worthington’s 199th uninterrupted dividend payment since the Company went public in 1968.

Stock Performance

At the closing bell, on Friday, July 07, 2017, Worthington Industries’ stock was slightly down 0.28%, ending the trading session at $50.47. A total volume of 423.90 thousand shares has exchanged hands, which was higher than the 3-month average volume of 348.58 thousand shares. The Company’s stock price surged 17.32% in the last three months, 4.23% in the past six months, and 19.29% in the previous twelve months. Moreover, the stock gained 6.39% since the start of the year. The stock is trading at a PE ratio of 15.97 and has a dividend yield of 1.66%. The stock currently has a market cap of $3.14 billion.

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