Shares of Worthington Enterprises (NYSE: WOR) tumbled 5.58% in after-hours trading on Tuesday, despite the company reporting better-than-expected first-quarter revenue. The sharp decline suggests investors may have found other aspects of the earnings report concerning.
For its fiscal 2026 first quarter ended August 31, Worthington reported revenue of $303.7 million, surpassing the IBES estimate of $291.8 million. Net earnings increased 45% to $34.8 million, while adjusted earnings per share rose from $0.50 to $0.74 year-over-year. The company saw strong performance in its Building Products segment, with net sales up 32.2% to $184.8 million.
However, the stock's significant after-hours decline indicates that investors may be focusing on other factors, such as potential headwinds in the Consumer Products segment or concerns about future guidance. The company's Consumer Products division saw only a slight increase in net sales, and its adjusted EBITDA decreased compared to the prior year. Additionally, while Worthington's overall results showed improvement, the market reaction suggests expectations may have been even higher or that investors are cautious about the company's outlook amid economic uncertainties.