We Think Worthington Enterprises' (NYSE:WOR) Healthy Earnings Might Be Conservative

The stock was sluggish on the back of Worthington Enterprises, Inc.'s (NYSE:WOR) recent earnings report. Our analysis suggests that there are some reasons for hope that investors should be aware of.

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The Impact Of Unusual Items On Profit

Importantly, our data indicates that Worthington Enterprises' profit was reduced by US$68m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Worthington Enterprises took a rather significant hit from unusual items in the year to August 2025. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Worthington Enterprises' Profit Performance

As we discussed above, we think the significant unusual expense will make Worthington Enterprises' statutory profit lower than it would otherwise have been. Based on this observation, we consider it possible that Worthington Enterprises' statutory profit actually understates its earnings potential! Furthermore, it has done a great job growing EPS over the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Every company has risks, and we've spotted 1 warning sign for Worthington Enterprises you should know about.

This note has only looked at a single factor that sheds light on the nature of Worthington Enterprises' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.

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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.