Worthington Industries (WOR) Trading Down 8.2% Following Weak Earnings

Worthington Industries, Inc. (NYSE:WOR) shares dropped 8.2% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $42.35 and last traded at $42.50. Approximately 1,241,800 shares were traded during trading, an increase of 319% from the average daily volume of 296,081 shares. The stock had previously closed at $46.30.

The industrial products company reported $0.92 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.02 by ($0.10). Worthington Industries had a net margin of 5.44% and a return on equity of 17.39%. The business had revenue of $988.10 million for the quarter, compared to analysts’ expectations of $1.03 billion. During the same period last year, the firm earned $0.73 EPS. The company’s revenue was up 16.5% compared to the same quarter last year.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 28th. Investors of record on Friday, December 14th will be paid a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 2.18%. Worthington Industries’s payout ratio is 31.94%.

Several equities research analysts recently commented on the company. ValuEngine cut Worthington Industries from a “hold” rating to a “sell” rating in a research note on Friday, June 29th. Jefferies Financial Group lowered their price target on Worthington Industries from $48.00 to $47.00 and set a “hold” rating for the company in a research note on Thursday. Zacks Investment Research raised Worthington Industries from a “hold” rating to a “buy” rating and set a $52.00 price target for the company in a research note on Saturday, June 30th. Finally, JPMorgan Chase & Co. lowered their price target on Worthington Industries from $48.00 to $45.00 and set a “neutral” rating for the company in a research note on Thursday.

In related news, VP Terrence M. Dyer sold 14,551 shares of the business’s stock in a transaction that occurred on Wednesday, July 25th. The stock was sold at an average price of $46.81, for a total value of $681,132.31. Following the completion of the sale, the vice president now owns 18,491 shares of the company’s stock, valued at approximately $865,563.71. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Chairman John P/Oh Mcconnell sold 100,000 shares of the business’s stock in a transaction that occurred on Friday, July 20th. The shares were sold at an average price of $46.00, for a total value of $4,600,000.00. Following the completion of the sale, the chairman now directly owns 1,766,699 shares of the company’s stock, valued at approximately $81,268,154. The disclosure for this sale can be found here. Insiders own 31.30% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Macquarie Group Ltd. grew its stake in shares of Worthington Industries by 10.8% in the 2nd quarter. Macquarie Group Ltd. now owns 1,151,872 shares of the industrial products company’s stock valued at $48,344,000 after buying an additional 112,524 shares in the last quarter. Federated Investors Inc. PA boosted its position in Worthington Industries by 37.7% during the first quarter. Federated Investors Inc. PA now owns 95,560 shares of the industrial products company’s stock worth $4,101,000 after purchasing an additional 26,184 shares during the period. Schwab Charles Investment Management Inc. boosted its position in Worthington Industries by 9.1% during the second quarter. Schwab Charles Investment Management Inc. now owns 387,587 shares of the industrial products company’s stock worth $16,268,000 after purchasing an additional 32,333 shares during the period. Fox Run Management L.L.C. bought a new stake in Worthington Industries during the second quarter worth approximately $251,000. Finally, Neuburgh Advisers LLC boosted its position in Worthington Industries by 37.4% during the second quarter. Neuburgh Advisers LLC now owns 5,742 shares of the industrial products company’s stock worth $241,000 after purchasing an additional 1,562 shares during the period. 50.54% of the stock is owned by institutional investors and hedge funds.

The stock has a market capitalization of $2.75 billion, a PE ratio of 14.75 and a beta of 0.99. The company has a quick ratio of 1.22, a current ratio of 1.92 and a debt-to-equity ratio of 0.72.

Worthington Industries Company Profile (NYSE:WOR)

Worthington Industries, Inc, a metals manufacturing company, focuses on value-added steel processing and manufactured metal products in the United States, Austria, Canada, Mexico, Poland, Portugal, and Turkey. The company operates through three segments: Steel Processing, Pressure Cylinders, and Engineered Cabs.

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