Why Is Worthington Enterprises Stock Diving Premarket On Wednesday?
Worthington Enterprises, Inc. (NYSE:WOR) shares are trading lower at a premarket on Wednesday after the company reported worse-than-expected first-quarter financial results.
On Tuesday, the company reported a net sales decline of 17.5% Y/Y to $257.3 million, missing the consensus of $300.26 million.
The decline was attributed to the deconsolidation of the former Sustainable Energy Solutions (SES) segment in the fourth quarter of FY24 and lower volumes in the Building Products segment.
Adjusted EBITDA from continuing operations fell to $48.4 million from $65.9 million a year ago quarter. Adjusted EPS of $0.50 missed the consensus of $0.74.
By segment, Consumer Products’ net sales stood at $117.6 million in the quarter, with adjusted EBITDA coming in at $17.8 million. Meanwhile, Building Products generated net sales of $139.7 million, down 15.8% Y/Y, in the quarter.
As of May 31, 2024, debt remained steady at $300 million and cash stood at $178.5 million.
Dividend: The Board of Directors declared a quarterly dividend of $0.17 per common share, payable on December 27, 2024, to shareholders of record as of December 13, 2024.
In the quarter, the company repurchased 150,000 common shares for $6.8 million, averaging $45.35 per share.
Worthington Enterprises President and CEO Andy Rose stated, “Consumer Products had a solid quarter delivering year over year earnings growth despite flat volumes. Building Products earnings were down on weak volumes in our heating and cooking business, combined with lower contributions from ClarkDietrich, which continued to face some margin compression.”
“We have a positive long-term outlook especially with the recent recalibration of interest rates. Our market-leading products and brands are well-positioned to take advantage of long-term secular trends and should benefit when near-term headwinds subside and demand normalizes,” Rose added.
Price Action: WOR shares are down 5.03% at $43.01 premarket at the last check on Wednesday.
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This article Why Is Worthington Enterprises Stock Diving Premarket On Wednesday? originally appeared on Benzinga.com
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