Upcoming AWS Coverage on Nucor

LONDON, UK / ACCESSWIRE / April 11, 2017 / Active Wall St. announces its post-earnings coverage on Worthington Industries, Inc. (NYSE: WOR). The Company posted its financial results for the third quarter fiscal 2017 (Q3 FY17) on March 29, 2017. The Columbus, Ohio-based Company's quarterly net sales rose 9% y-o-y. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Worthington Industries' competitors within the Steel & Iron space, Nucor Corp. (NYSE: NUE), is estimated to report earnings on April 20, 2017. AWS will be initiating a research report on Nucor following the release of its next earnings release.

Today, AWS is promoting its earnings coverage on WOR; touching on NUE. Get our free coverage by signing up to

http://www.activewallst.com/register/

Earnings Reviewed

In Q3 FY17, Worthington net sales increased to $703.44 million from the $647.08 million recorded at the end of Q3 FY16. However, net sales numbers for Q3 FY17 fell short of market consensus estimates of $719.7 million. The increase in quarterly net sales is primarily attributable to higher average direct selling prices in Steel Processing along with higher tolling volume due to the consolidation of the Worthington Specialty Processing (WSP) joint venture effective March 01, 2016.

The metal manufacturer's net earnings attributable to controlling interest grew to $35.89 million, or $0.55 per diluted share, in Q3 FY17 from $29.85 million, or $0.47 per diluted share, in the prior year's comparable quarter. Meanwhile, Wall Street had expected the Company to report net earnings of $0.64 per diluted share.

Operational Metrics

In the quarter ended on February 28, 2017, Worthington's gross margin improved to $110.99 million from $95.92 million in the year ago same period. The Company's improved gross margin was due to favorable pricing spread in Steel Processing, benefitting from lower inventory holding losses and improvements in the consumer products business within Pressure Cylinders.

For Q3 FY17, operating income came in at $34.32 million versus $25.07 million reported in the year ago corresponding period. The rise of operating income by $9.25 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 the consolidation of Worthington Specialty Processing (WSP).

Segment Performance

Worthington's Steel Processing segment net sales for Q3 FY17 grew 14% to $478.17 million from $419.03 million reported in Q3 FY16. The segment's Q3 FY17 operating income rose to $26.03 million from $21.29 million in Q3 FY16 on favorable pricing spread, including a benefit from lower inventory holding losses, and contributions from WSP, which was partially offset by an increase in allocated corporate costs and higher manufacturing expenses.

The Company's Pressure Cylinders segment's net sales were down by 1% in Q3 FY17 to $198.43 million from $200.72 million in Q3 FY16. However, the segment's reported operating income increased to $10.07 million in Q3 FY17 from $8.97 million recorded in Q3 FY16, primarily due to higher profitability in the consumer products business, which was partially offset by higher restructuring charges.

Engineered Cabs segments' net sales fell 8% during the reported period to $23.55 million from $25.55 million in Q3 FY16. The segment's operating loss narrowed down to $2.00 million in Q3 FY17 from operating loss of $4.05 million in the year ago comparable quarter due to favorable pricing spread combined with lower manufacturing costs.

Cash Matters and Balance Sheet

In Q3 FY17, the Company's cash flow from operations was $102.71 million compared to $106.22 million in the last year's same quarter. The Company had cash and cash equivalents balance of $227.28 million on February 28, 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 $576.00 million, down from $577.49 million from May 31, 2016.

Dividend

In a separate press release on March 29, 2017, the Company's Board of Directors has declared a quarterly dividend $0.20 per share, which will be payable on June 29, 2017, to all shareholders of record June 15, 2017. The upcoming dividend payment would mark Worthington's 198th uninterrupted dividend payment since the Company went public in 1968.

Stock Performance

At the close of trading session on Monday, April 10, 2017, Worthington Industries' stock price slightly fell 0.67% to end the day at $43.05. A total volume of 301.37 thousand shares were exchanged during the session. The Company's share price has surged 20.43% in the past twelve months. Shares of the Company are trading at a PE ratio of 13.44 and have a dividend yield of 1.86%. The stock currently has a market cap of $2.72 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street