Overview

* Worthington Steel ( WS ) fiscal Q1 net sales rise 5% yr/yr to $872.9 mln

* Adjusted EPS for fiscal Q1 rises to $0.77

* Sitem Group acquisition boosts direct sales volumes by 1% in fiscal Q1

Result Drivers

* DIRECT VOLUME INCREASE - Higher direct volumes, including a 1% contribution from Sitem Group acquisition, drove sales growth

* INVENTORY GAINS - Gross margin benefited from a $22.2 mln favorable change in inventory holding gains

* TOLL VOLUME DECLINE - Toll volumes fell 22% due to softening demand and a facility closure

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $872.90 $834.60

Revenue mln mln (1

Analyst)

Q1 Beat $0.77 $0.76 (1

Adjusted Analyst)

EPS

Q1 EPS $0.72

Q1 Net $36.80

Income 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 "buy"

* Wall Street's median 12-month price target for Worthington Steel Inc ( WS ) is $36.00, about 8.2% above its September 23 closing price of $33.05

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(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.)