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AZZ Q1 Earnings & Revenues Beat Estimates, FY22 EPS View Up

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AZZ Inc. (AZZ - Free Report) reported earnings per share of 88 cents for first-quarter fiscal 2022 (ended May 31, 2021), surpassing the Zacks Consensus Estimate of 62 cents by 41.9%. The bottom line also improved significantly from the year-ago quarter’s earnings of 21 cents by 319%.

Total Revenues

In the quarter under review, the company’s revenues came in at $229.8 million, outpacing the Zacks Consensus Estimate of $214 million by 7.4%.

Driven by strength in its reportable segments, the top line increased 7.8% from $213.3 million in the prior-year quarter. Revenues from the Infrastructure Solutions and Metal Coatings segments rose 8.3% and 7.3% year over year, respectively.

AZZ Inc. Price, Consensus and EPS Surprise

AZZ Inc. Price, Consensus and EPS Surprise

AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote

Quarterly Highlights

Total operating income in the quarter surged 114.5% to $30.7 million from the year-ago figure of $14.3 million.

Selling, general and administrative expenses came in at $27.2 million, down 2.4% from $27.9 million in the prior-year quarter.

Interest expenses fell 35.6% to $1.7 million from $2.6 million in the prior-year quarter.

Bookings in first-quarter fiscal 2022 were up 31.4% year over year to $229.8 million.

Financial Highlights

Cash and cash equivalents as of May 31, 2021 amounted to $12.4 million compared with $26.4 million in the year-ago period.

Long-term debt due after one year (net) was $185.4 million as of May 31, 2021 compared with $178.4 million on Feb 28, 2021.

Net cash provided by operating activities at the end of first the three months of 2021 was $11.1 million while net cash used in operating activities was $11.2 million in the corresponding period of 2020.

During the quarter, the company repurchased 125,770 shares worth $6.3 million.

Capital expenditures amounted to $7.5 million in the quarter, down from $10.8 million in the prior-year period.

Guidance

The company lifted its fiscal 2022 earnings per share guidance to the $2.65-$3.05 range from the prior bandof $2.45-$2.95. The Zacks Consensus Estimate for the same is pegged at $2.69, which is near the lower end of the company’s expectation. It narrowed its revenue outlook to the range of $855-$935 million from the previous expectation of $835-$935 million.

Zacks Rank

AZZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Eaton Corporation plc (ETN - Free Report) reported first-quarter 2021 earnings of $1.44 per share, which surpassed the Zacks Consensus Estimate of $1.25 by 15.2%.

Regal Beloit Corporation (RBC - Free Report) delivered better-than-expected results for the first quarter of 2021 with earnings surpassing estimates by 17.86%.

Emerson Electric Co’s (EMR - Free Report) second-quarter fiscal 2021 (ended Mar 31, 2021) adjusted earnings of 97 cents per share beat the Zacks Consensus Estimate of 90 cents.

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