Worthington Steel Inc. (WS) shares plummeted as much as 12.71% during Wednesday's intraday trading session, erasing gains from the pre-market as the company's fiscal second-quarter revenue fell short of analyst expectations, overshadowing an earnings beat.
The steel processor reported adjusted earnings per diluted share of $0.19 for the quarter ended November 30, 2024, up from $0.11 a year earlier and surpassing analyst estimates. However, net sales for the quarter declined to $739 million from $808 million in the same period last year, missing analysts' expectations of around $740.4 million.
The disappointing revenue numbers appeared to be the primary driver behind the steep sell-off in Worthington Steel's stock. The company cited lower volumes and prices as key factors impacting its top line. Direct tons sold fell 5% year-over-year, while direct selling prices were 4% lower than last year. CEO Geoff Gilmore also cited headwinds across several of the company's end markets, contributing to the weaker-than-expected revenue performance.
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