Why Worthington Steel Shares Are Skyrocketing Friday

Worthington Steel, Inc. WS shares are skyrocketing on Friday.

The company reported third quarter fiscal 2024 adjusted earnings per share of 99 cents, beating the Wall Street view of 84 cents.

Quarterly revenues of $805.80 million outpaced the analyst consensus of $700.50 million. Sales increased 3%, compared to the prior year quarter. 

The increase was driven primarily by a 1% increase in direct selling prices and an 11% increase in toll selling prices.

“We saw improvements in sales, operating income and net income over the same quarter in 2023, and our teams are laser-focused on finishing the fiscal year strong,” said Geoff Gilmore, president and chief executive officer of Worthington Steel.

Gross margin increased by $56.9 million over the prior year quarter to $120.1 million. The increase was driven primarily by improved direct spreads and higher volume.

Operating income improved by $56.8 million over the prior year quarter to $66.3 million, primarily due to the improved gross margin. 

“I’m optimistic about our future and confident in our team, our growth plans and our strategy,” Gilmore added.

Worthington Steel has declared a quarterly dividend of $0.16 per common share, payable on June 28, 2024, to shareholders of record on June 14, 2024.

Price Action: WS shares are trading higher by 24.7% to $39.79 on the last check Friday. 

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