Worthington Steel (NYSE:WS) Shares Gap Down on Disappointing Earnings

Worthington Steel, Inc. (NYSE:WS) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $35.01, but opened at $29.80. Worthington Steel shares last traded at $30.6340, with a volume of 143,603 shares trading hands.

The company reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.20). Worthington Steel had a net margin of 3.83% and a return on equity of 10.70%. The business had revenue of $769.80 million for the quarter, compared to analysts’ expectations of $882.95 million. During the same quarter in the previous year, the business posted $0.35 earnings per share. Worthington Steel’s revenue for the quarter was up 12.0% on a year-over-year basis.

Worthington Steel Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 12th will be paid a dividend of $0.16 per share. The ex-dividend date is Friday, June 12th. This represents a $0.64 dividend on an annualized basis and a yield of 2.2%. Worthington Steel’s payout ratio is presently 35.96%.

Key Headlines Impacting Worthington Steel

Here are the key news stories impacting Worthington Steel this week:

• Positive Sentiment: KeyCorp initiated coverage with an “overweight” rating and a $46 price target, signaling sizable upside versus current levels and potentially supporting buying interest. KeyCorp Coverage
• Positive Sentiment: Worthington declared a quarterly cash dividend of $0.16 per share (payable June 26; record June 12), yielding about 2.1% annually — a shareholder-friendly move that can support the stock’s income appeal. Dividend Announcement
• Neutral Sentiment: The company filed its fiscal Q3 results and accompanying release, providing full financial details and management commentary for investors to parse (see below for analyst takeaways). Earnings Press Release
• Negative Sentiment: Q3 results missed expectations: EPS came in at $0.27 vs. a $0.47 consensus and revenue was $769.8M vs. ~$883M expected — a clear earnings and top-line miss that has been cited as the primary driver of intraday weakness. Analyst Note on Miss
• Negative Sentiment: Market coverage flagged the miss and weak margins — media headlines note the stock “tumbled” after the release, reflecting investor reaction to the earnings shortfall. Market Reaction
• Negative Sentiment: Wider market pressure (U.S. futures slipping amid geopolitical headlines) is applying additional downward momentum to cyclicals like steel producers, increasing the chance of further near-term volatility for WS. Market Context

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on WS shares. KeyCorp assumed coverage on Worthington Steel in a report on Wednesday. They set an “overweight” rating and a $46.00 price target for the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Worthington Steel in a research note on Wednesday, January 21st. Zacks Research raised shares of Worthington Steel from a “strong sell” rating to a “hold” rating in a research report on Monday, February 16th. Finally, Wall Street Zen upgraded shares of Worthington Steel from a “buy” rating to a “strong-buy” rating in a research note on Saturday, February 28th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Worthington Steel currently has an average rating of “Hold” and a consensus target price of $46.00.

Insider Activity

In other Worthington Steel news, Director Jon J. Bowsher bought 2,500 shares of the firm’s stock in a transaction on Friday, January 30th. The stock was acquired at an average price of $40.15 per share, with a total value of $100,375.00. Following the transaction, the director owned 17,893 shares in the company, valued at $718,403.95. This represents a 16.24% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Scott J. Kelly bought 7,000 shares of the stock in a transaction on Tuesday, January 27th. The shares were bought at an average price of $39.11 per share, for a total transaction of $273,770.00. Following the purchase, the director directly owned 16,157 shares in the company, valued at approximately $631,900.27. This trade represents a 76.44% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 2.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WS. Rockefeller Capital Management L.P. lifted its position in Worthington Steel by 1,239.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 750 shares of the company’s stock valued at $26,000 after purchasing an additional 694 shares during the period. Hantz Financial Services Inc. raised its stake in Worthington Steel by 56.4% during the 4th quarter. Hantz Financial Services Inc. now owns 910 shares of the company’s stock valued at $32,000 after buying an additional 328 shares during the last quarter. MAI Capital Management lifted its holdings in shares of Worthington Steel by 39.8% during the 3rd quarter. MAI Capital Management now owns 1,404 shares of the company’s stock valued at $43,000 after buying an additional 400 shares during the period. Torren Management LLC purchased a new position in shares of Worthington Steel in the 4th quarter worth $48,000. Finally, Caldwell Trust Co purchased a new position in shares of Worthington Steel in the 2nd quarter worth $52,000. Institutional investors own 45.41% of the company’s stock.

Worthington Steel Stock Down 15.0%

The company has a quick ratio of 1.09, a current ratio of 1.80 and a debt-to-equity ratio of 0.04. The company has a market cap of $1.51 billion, a P/E ratio of 16.71 and a beta of 1.62. The company has a fifty day moving average of $40.19 and a 200 day moving average of $35.62.

Worthington Steel Company Profile

Worthington Steel (NYSE: WS) is a leading North American steel processor specializing in the production of flat-rolled, coated and painted sheet and coil products. Operating as a wholly owned subsidiary of Worthington Industries, the company serves a broad range of industries, including construction, automotive, appliance, energy and agricultural equipment. Its core business activities encompass the processing, finishing and distribution of carbon and advanced high-strength steels, aluminum and stainless products to manufacturers across the continent.

The company’s product portfolio includes hot-dip galvanizing, galvannealed, aluminized and pre-painted steel products, as well as cold-rolled and hot-rolled coil.