Worthington Industries Q1 Earnings Beat Estimates

Worthington Industries, Inc. WOR reported first-quarter FY22 net sales growth of 58% year-over-year to $1.11 billion, beating the consensus of $1.08 billion.
The increase in sales was driven primarily by higher average direct selling prices in Steel Processing.
Sales by segments: Steel Processing $822.8 million (+90.9% Y/Y), Consumer Products $147.8 million (+10.6% Y/Y), Building Products $114.7 million +30.2% Y/Y) and Sustainable Energy Solutions $25.5 million (-8.5% Y/Y).
Adjusted EPS improved to $2.46 from $0.64 in 1Q21, beating the consensus of $1.90. The gross margin expanded by 362 bps to 19.8%.
The operating income was $135.8 million versus $(30.12) million a year ago. The operating margin was 12.2% for the quarter.
Net cash used by operating activities was $49.81 million, compared to cash provided $117.39 million a year ago. During the quarter, the company repurchased a total of 1 million shares for $60.9 million.
Worthington Industries held $399.2 million in cash and equivalents as of August 31, 2021. Total debt was $706.4 million, down slightly from May 31, 2021.
Price Action: WOR shares are trading higher by 2.60% at $57.14 on Wednesday.

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