COLUMBUS - Worthington Enterprises, Inc. (NYSE:WOR) reported lower-than-expected earnings for its fiscal 2024 third quarter ended February 29, 2024. The company announced earnings per share (EPS) of $0.44, which fell short of the analyst consensus estimate of $0.69. Revenue for the quarter was also below expectations at $316.8 million compared to the predicted $327.47 million.
Compared to the same quarter last year, the company's net sales decreased by 8.5%, down from $346.3 million. The third quarter results were impacted by final Separation costs and a one-time charge to income tax expense primarily related to non-deductible transaction costs. Additionally, the quarter faced a non-cash charge related to the settlement of the company's last remaining pension plan.
President and CEO Andy Rose commented on the quarter's performance, stating, "We are off to a good start with our first full quarter as Worthington Enterprises reporting adjusted earnings of $0.80 per share." Rose attributed the results to higher volume and margins in their Consumer Products business and contributions from their Building Products segment, which were offset by softness in Europe from their Sustainable Energy Solutions business.
The adjusted EPS, which excludes certain items such as Separation costs and pension settlement charges, stood at $0.80 per diluted share this quarter, compared to $0.81 per share in the prior year quarter. The company's operating income saw a slight increase from $4.0 million in the previous year to $4.3 million in the current quarter.
Worthington Enterprises did not provide specific financial guidance for the upcoming quarters in the press release. However, CEO Rose expressed confidence in the company's strategic positioning and the strength of its balance sheet, indicating a positive outlook for the future.
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