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News Flash: Analysts Just Made A Captivating Upgrade To Their Worthington Industries, Inc. (NYSE:WOR) Forecasts

·2 min read

Worthington Industries, Inc. (NYSE:WOR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After this upgrade, Worthington Industries' three analysts are now forecasting revenues of US$4.5b in 2022. This would be a solid 11% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 23% to US$6.52 in the same period. Previously, the analysts had been modelling revenues of US$3.9b and earnings per share (EPS) of US$5.05 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Worthington Industries

earnings-and-revenue-growth
earnings-and-revenue-growth

Despite these upgrades, the consensus price target fell 18% to US$56.00, perhaps signalling that the uplift in performance is not expected to last.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Worthington Industries' rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 1.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Worthington Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The declining price target is a puzzle, but still - with a serious upgrade to this year's expectations, it might be time to take another look at Worthington Industries.

Analysts are definitely bullish on Worthington Industries, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other flag we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.