We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AZZ Q1 Earnings and Revenues Surpass Estimates, Rise Y/Y
Read MoreHide Full Article
AZZ Inc. (AZZ - Free Report) reported first-quarter fiscal 2025 (ended May 31, 2024) adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.31. The bottom line increased 28.1% year over year.
On a reported basis, the company’s loss was $1.38 per share. Notably, it incurred expenses of $75.2 million related to the redemption premium payment on series A preferred stock.
AZZ’s total sales of $413.2 million beat the consensus estimate of $401 million. Also, the top line increased 5.7% year over year.
Segmental Discussion
Sales from the Metal Coatings segment increased 4.7% year over year to $176.7 million. The sales growth was attributable to higher volume, driven by an increase in infrastructure spending, including construction, bridge and highway, transmission and distribution. EBITDA margin increased 20 basis points year over year to 30.9%.
Sales from the Precoat Metals segment rose 6.5% year over year to $236.6 million. The increase was driven by strength across several end markets like HVAC, construction and recreational transportation. EBITDA margin increased 80 basis points to 20.2% from the year-ago figure.
AZZ’s cost of sales increased 5.6% year over year to $310.5 million. Selling and administrative expenses increased 4.4% to $32.9 million. Net interest expenses totaled $22.8 million, down 20.6% year over year.
AZZ recorded an operating income of $69.7 million, up 6.4% year over year. The operating margin was 16.9% compared with 16.8% in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the fiscal first quarter, AZZ had cash and cash equivalents of $10.5 million compared with $3.9 million at the end of the first quarter of fiscal 2024 (ended May 2023). Long-term debt (net) was $929.8 million, lower than $952.7 million at the end of fiscal 2024.
In the first three months of fiscal 2025, the company generated net cash of $71.9 million from operating activities compared with $46.9 million in the year-ago period.
In the same period, the company rewarded its shareholders with a dividend payment of $4.3 million.
Fiscal 2025 Outlook
Management reaffirmed its financial guidance for fiscal 2025 (ending February 2025). It expects sales to be in the range of $1.525-$1.625 billion compared with $1.537 billion reported in fiscal 2024 (ended February 2024). Adjusted EBITDA is projected to be between $310 million and $360 million.
AZZ anticipates adjusted earnings per share to be in the band of $4.50-$5.00.
Zacks Rank & Stocks to Consider
AZZ currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the same space are discussed below:
ENS delivered a trailing four-quarter average earnings surprise of 2.7%. In the past 60 days, the Zacks Consensus Estimate for Enersys’ fiscal 2025 (ending March 2025) earnings has increased 3.9%.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS delivered a trailing four-quarter average earnings surprise of 6.7%. The consensus estimate for 2024 earnings has remained stable in the past 60 days.
ESCO Technologies Inc. (ESE - Free Report) carries a Zacks Rank of 2 at present. In the past 60 days, the Zacks Consensus Estimate for ESE’s fiscal 2024 (ending September 2024) earnings has advanced 0.5%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
AZZ Q1 Earnings and Revenues Surpass Estimates, Rise Y/Y
AZZ Inc. (AZZ - Free Report) reported first-quarter fiscal 2025 (ended May 31, 2024) adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.31. The bottom line increased 28.1% year over year.
On a reported basis, the company’s loss was $1.38 per share. Notably, it incurred expenses of $75.2 million related to the redemption premium payment on series A preferred stock.
AZZ’s total sales of $413.2 million beat the consensus estimate of $401 million. Also, the top line increased 5.7% year over year.
Segmental Discussion
Sales from the Metal Coatings segment increased 4.7% year over year to $176.7 million. The sales growth was attributable to higher volume, driven by an increase in infrastructure spending, including construction, bridge and highway, transmission and distribution. EBITDA margin increased 20 basis points year over year to 30.9%.
Sales from the Precoat Metals segment rose 6.5% year over year to $236.6 million. The increase was driven by strength across several end markets like HVAC, construction and recreational transportation. EBITDA margin increased 80 basis points to 20.2% from the year-ago figure.
AZZ Inc. Price, Consensus and EPS Surprise
AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote
Margin Profile
AZZ’s cost of sales increased 5.6% year over year to $310.5 million. Selling and administrative expenses increased 4.4% to $32.9 million. Net interest expenses totaled $22.8 million, down 20.6% year over year.
AZZ recorded an operating income of $69.7 million, up 6.4% year over year. The operating margin was 16.9% compared with 16.8% in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the fiscal first quarter, AZZ had cash and cash equivalents of $10.5 million compared with $3.9 million at the end of the first quarter of fiscal 2024 (ended May 2023). Long-term debt (net) was $929.8 million, lower than $952.7 million at the end of fiscal 2024.
In the first three months of fiscal 2025, the company generated net cash of $71.9 million from operating activities compared with $46.9 million in the year-ago period.
In the same period, the company rewarded its shareholders with a dividend payment of $4.3 million.
Fiscal 2025 Outlook
Management reaffirmed its financial guidance for fiscal 2025 (ending February 2025). It expects sales to be in the range of $1.525-$1.625 billion compared with $1.537 billion reported in fiscal 2024 (ended February 2024). Adjusted EBITDA is projected to be between $310 million and $360 million.
AZZ anticipates adjusted earnings per share to be in the band of $4.50-$5.00.
Zacks Rank & Stocks to Consider
AZZ currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the same space are discussed below:
Enersys (ENS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ENS delivered a trailing four-quarter average earnings surprise of 2.7%. In the past 60 days, the Zacks Consensus Estimate for Enersys’ fiscal 2025 (ending March 2025) earnings has increased 3.9%.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS delivered a trailing four-quarter average earnings surprise of 6.7%. The consensus estimate for 2024 earnings has remained stable in the past 60 days.
ESCO Technologies Inc. (ESE - Free Report) carries a Zacks Rank of 2 at present. In the past 60 days, the Zacks Consensus Estimate for ESE’s fiscal 2024 (ending September 2024) earnings has advanced 0.5%.