Worthington Enterprises Inc (NYSE:WOR) stock fell 4.37% (As on June 26, 12:10:18 AM UTC-4, Source: Google Finance) after the company fell short of analysts’ expectations for the fourth quarter of FY 24 but gave an optimistic outlook from the company’s leadership. The operating loss of $56.1 million for the fourth quarter was unfavorable to the $15.3 million of operating income in the prior year quarter, due to significantly higher impairment and restructuring charges stemming from the deconsolidation of the former Sustainable Energy Solutions segment, effective May 29, 2024. Equity income decreased $10.9 million from the prior year quarter to $40.4 million, driven by lower contributions from ClarkDietrich which was down $13.8 million from the near record results in the prior year quarter, partially offset by strong contributions from WAVE which increased $3.3 million compared to the prior year quarter. Miscellaneous expense was unfavorable by $11.1 million from the prior year quarter due to the write-down of an investment in a note receivable as a result of a change in business strategy in the Sustainable Energy Solutions business, while net interest expense was favorable $2.6 million over the prior year quarter due to lower average debt levels.

WOR in the fourth quarter of FY 24 has reported the adjusted earnings per share of 74 cents, missing the analysts’ estimates for the adjusted earnings per share of 88 cents. The company had reported the adjusted revenue decline of 13.6 percent to $319 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $352.82 million.

Moreover, Consumer Products generated net sales of $125.3 million during the fourth quarter of fiscal 2024, down $23.5 million, or 16%, from the prior year quarter on lower volume. Building Products generated net sales of $153.6 million during the fourth quarter of fiscal 2024, down $21.0 million, or 12%, from the prior year quarter due to lower volume and an unfavorable shift in product mix. Sustainable Energy Solutions’ net sales totaled $39.9 million, down 12.0%, or $5.5 million, from the prior year quarter due to lower average selling prices and lower volume.

Additionally, the company formed a new unconsolidated joint venture with Hexagon, comprised of the former Sustainable Energy Solutions segment. Pursuant to the transaction, Hexagon acquired a 49% stake in the joint venture for approximately $10 million plus closing cash. The Company retained a 49% noncontrolling interest in the joint venture, with the remaining 2% held by the executive management team of Sustainable Energy Solutions.