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Worthington Enterprises raises dividend to $0.17 per share

EditorNatashya Angelica
Published 06/25/2024, 01:13 PM

COLUMBUS, Ohio - Worthington Enterprises, Inc. (NYSE: WOR) announced an increase in its quarterly dividend to $0.17 per share on Tuesday, marking a 6.25% rise from the previous quarter's dividend. The new dividend will be distributed on September 27, 2024, to shareholders who are on record as of September 13, 2024.

This move continues the company's long-standing practice of paying quarterly dividends since its initial public offering in 1968. Worthington Enterprises, recognized for its design and manufacturing of various consumer and building products, is set to discuss its fiscal fourth-quarter results in an earnings conference call scheduled for Wednesday at 8:30 a.m. ET.

The forthcoming earnings report, which is to be released after the market closes today, will provide insights into the company's performance. Interested parties can register for the live audio webcast of the conference call, with a replay being made available on the company's website shortly after the call concludes.

Worthington Enterprises operates through two primary segments: Building Products, which encompasses a range of cooking, heating, cooling, and water solutions, as well as architectural elements and metal framing; and Consumer Products, offering solutions for tools, outdoor living, and celebrations. The company's portfolio includes notable brands such as Balloon Time®, Bernzomatic®, and Coleman®.

In addition to its product offerings, Worthington Enterprises is also engaged in a joint venture that supports the growing global hydrogen ecosystem, providing on-board fueling systems and gas containment solutions.

Headquartered in Columbus, Ohio, the company employs approximately 4,000 people across North America and Europe. Founded in 1955, Worthington Enterprises prioritizes a people-first philosophy and is actively involved in community engagement and workforce development programs. The company also places a strong emphasis on corporate citizenship and sustainability, reporting annually on its efforts in these areas.

The information for this article is based on a press release statement from Worthington Enterprises, Inc.

In other recent news, Worthington Enterprises has announced the completion of its acquisition of Hexagon Ragasco, a key player in the production of lightweight LPG composite cylinders.

This strategic acquisition is expected to strengthen Worthington's global propane market presence and enhance its product offerings, especially in regions with developing infrastructure. Hexagon Ragasco's advanced composite cylinders, known for their role in the shift to clean fuels, are now part of Worthington's portfolio.

In addition to this significant development, Worthington Enterprises has demonstrated robust third-quarter results. Despite sales missing analyst expectations by approximately 3%, the company exceeded profitability estimates with both gross margin and Adjusted EBITDA margin surpassing consensus estimates. This led to an earnings beat, with adjusted earnings per share (EPS) reported at $0.80, significantly higher than the consensus estimate of $0.69.

Following these results, Canaccord Genuity has raised its price target for Worthington shares to $64 from the previous $56, while maintaining a Hold rating on the stock. This revised price target reflects an increase in profitability estimates and a higher target multiple. These are recent developments in the ongoing story of Worthington Enterprises.

InvestingPro Insights

Following Worthington Enterprises, Inc.'s announcement of a dividend increase, a closer look at the company's financial health through InvestingPro reveals several key metrics. The company boasts a market capitalization of $2.52 billion and a P/E ratio that stands at a competitive 9.03, indicating a potentially undervalued stock relative to near-term earnings growth. This aligns with one of the InvestingPro Tips, which notes that Worthington Enterprises is trading at a low P/E ratio relative to near-term earnings growth.

Moreover, the company's commitment to shareholder value is evident, as it has not only maintained but also raised its dividend for 52 consecutive years, a testament to its financial stability and consistent performance. This is further supported by the fact that the company's cash flows can sufficiently cover interest payments, ensuring that dividend payments are well-funded.

Despite concerns over a projected sales decline in the current year, the company's solid track record of profitability over the last twelve months and strong return over the last five years suggest resilience in its business model. In fact, analysts have revised their earnings upwards for the upcoming period, as highlighted in another InvestingPro Tip.

For investors looking for in-depth analysis and additional insights, there are 13 more InvestingPro Tips available at https://www.investing.com/pro/WOR. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of data and expert analysis to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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