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Corrected: Worthington Steel Q1 revenue jumps 212% on Kloeckner acquisition

CORRECTED-Worthington Steel Q1 revenue jumps 212% on Kloeckner acquisition

Corrects to remove estimates from KD table


Overview

  • US metals processor's fiscal Q1 revenue rose 212% yr/yr, driven by Kloeckner acquisition

  • Adjusted EPS for fiscal Q1 fell to $0.57 from $0.77 a year earlier

  • Company completed majority acquisition of Kloeckner, expanding operations and geographic footprint


Outlook

  • Company expects sale of Kloeckner Disposal Group to be completed within one year of acquisition


Result Drivers

  • KLOECKNER ACQUISITION - Kloeckner contributed $1.77 bln to Q1 net sales, driving overall revenue growth

  • HIGHER DIRECT VOLUMES AND PRICING - Excluding Kloeckner, Q1 net sales rose 9% yr/yr, mainly due to increased direct volumes and higher direct selling prices

  • INCREASED SG&A EXPENSES - Higher professional fees related to the Kloeckner acquisition contributed to a $17.6 mln rise in SG&A, reducing operating income for legacy business


Company press release: ID:nBw3n99zza


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

$2.73 bln

Q1 Adjusted EPS

$0.57

Q1 Loss Per Share

$0.14

Q1 Net Loss From Cont Ops

$7 mln


Analyst Coverage

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

  • The average consensus recommendation for the iron & steel peer group is "hold"

  • Wall Street's median 12-month price target for Worthington Steel Inc is $46.00, about 17.6% above its October 5 closing price of $39.12


Reuters Recommended Reads

  • Oct 5 - Singapore's Fortress Minerals Q2 revenue jumps on higher iron ore volumes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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