AZZ fiscal 1Q profit falls, shares tumble

AZZ posts lower fiscal 1st-qtr profit on tough comparisons, issues weak outlook, shares fall

Associated Press

FORT WORTH, Texas (AP) -- Electrical equipment maker AZZ Inc.'s fiscal first-quarter fell 9 percent, hurt by tough comparisons to a quarter boosted by hefty one-time gains.

The results Friday fell short of Wall Street predictions, and the company issued a disappointing profit projection for the full year. Its shares dropped 10 percent shortly after the markets opened.

For the quarter that ended May 31, AZZ earned $14.5 million, or 57 cents per share, down from $16 million, or 63 cents per share, a year earlier.

The recent quarter included losses related to a fire at one of the company's facilities, a gain related to a favorable lawsuit settlement and costs tied to recent acquisitions. Last year's quarter included a gain from insurance proceeds related to the facility fire and costs related to acquisitions.

Excluding those items, the company said it posted an adjusted profit of 56 cents per share for the recent quarter, compared with 51 cents per share a year earlier.

Revenue jumped 44 percent to $183.2 million from $127.1 million.

Analysts, on average, expected a profit of 63 cents per share on $197.6 million in revenue, According to FactSet.

Revenue at the company's electrical and industrial products and services business more than doubled to $96.5 million, boosted by contributions from recent acquisitions, while revenue from its galvanizing service business rose 5 percent to $86.7 million.

The company said it expects to post a profit for the current fiscal year of between $2.65 and $2.95 per share. It backed its previous fiscal year revenue guidance of $825 million to $900 million.

Analysts expect a profit of $2.98 per share on $878 million in revenue.

AZZ shares fell $4.21, or 10 percent, to $38.89 in morning trading. Over the past 52 weeks, the company's shares have traded between $28.95 and $49.10.

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