Worthington Enterprises Q1 revenue beats estimates on acquisitions

Overview

• U.S. building products maker's fiscal Q1 revenue grew 13% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 rose 5% yr/yr to $0.82

• Company repurchased 335,000 shares for $18.2 mln during the quarter

Outlook

• Worthington Enterprises says it remains focused on innovation and operational improvement

• Company says strong free cash flow and healthy balance sheet provide flexibility to pursue growth opportunities

Result Drivers

• ACQUISITIONS - Recent acquisitions contributed 6% to revenue growth in Q1, accounting for $19.2 mln of net sales increase

• ORGANIC GROWTH - Organic growth drove 7% of revenue increase in Q1, per CEO Joe Hayek

• SEGMENT MIX - Trade & Specialty Solutions benefited from higher volume and selling prices, while Building Performance Solutions faced lower volume and unfavorable product mix

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Worthington Enterprises, Inc. is $67.00, about 15.2% above its September 21 closing price of $58.15

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)