Margin Concerns Remain for Worthington Enterprises (WOR)

Worthington Enterprises, Inc. (NYSE:WOR) is one of the 10 most undervalued industrial stocks to buy according to analysts. On January 19, Seaport Global reiterated its Buy rating on the Worthington Enterprises, Inc. (NYSE:WOR) stock. It also set a target price of $74. Last month, Canaccord Genuity lowered its price target for the shares from $73 to $69 on December 19. Canaccord analyst Brian McNamara adjusted the firm’s price target while maintaining a Buy rating on the stock.

The firm noted that Worthington delivered solid revenue results in its eighth consecutive clean reporting quarter following the separation of its steel business. However, despite the strong revenue results, the company fell short of margin expectations. This margin shortfall was largely attributed to one-time items.

The company reported revenue of $327 million in the second quarter, surpassing the consensus estimates of $310.6 million. Adjusted earnings came in at $0.65 per share as compared to $0.60 per share in the same quarter last year.

CFO Colin Souza commented on the solid Q2 by stating:

We delivered solid financial results in Q2, reporting GAAP earnings of $0.55 per share compared to $0.56 per share in the prior year period, and excluding these items in both periods, adjusted earnings were $0.65 per share, up from $0.60 per share in the prior year quarter. Consolidated net sales for the quarter were $327 million, up over 19% compared to $274 million in the prior year quarter.

Worthington Enterprises, Inc. (NYSE:WOR) is an industrial manufacturing company. The company operates in the Building Products and Consumer Products segments. It was formerly known as Worthington Industries, Inc.

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Disclosure: None. This article is originally published at Insider Monkey.