U.S. markets closed
  • S&P 500

    3,465.39
    +11.90 (+0.34%)
     
  • Dow 30

    28,335.57
    -28.13 (-0.10%)
     
  • Nasdaq

    11,548.28
    +42.28 (+0.37%)
     
  • Russell 2000

    1,640.50
    +10.25 (+0.63%)
     
  • Crude Oil

    39.78
    -0.07 (-0.18%)
     
  • Gold

    1,903.40
    -1.80 (-0.09%)
     
  • Silver

    24.70
    +0.03 (+0.10%)
     
  • EUR/USD

    1.1861
    +0.0035 (+0.30%)
     
  • 10-Yr Bond

    0.8410
    -0.0070 (-0.83%)
     
  • GBP/USD

    1.3059
    -0.0021 (-0.16%)
     
  • USD/JPY

    104.6900
    -0.1500 (-0.14%)
     
  • BTC-USD

    13,038.22
    +20.70 (+0.16%)
     
  • CMC Crypto 200

    260.05
    -1.40 (-0.54%)
     
  • FTSE 100

    5,860.28
    +74.63 (+1.29%)
     
  • Nikkei 225

    23,516.59
    +42.29 (+0.18%)
     

AZZ Q3 Earnings In Line With Estimates, Revenues Surpass

Zacks Equity Research

AZZ Inc. AZZ reported earnings per share of 84 cents in third-quarter fiscal 2020 (ended Nov 30, 2019), which is in line with the Zacks Consensus Estimate. Moreover, the bottom line improved significantly from the year-ago quarter’s earnings of 59 cents by 42.4%.

Total Revenues

In the quarter under review, the company reported revenues of $291.1 million that surpassed the Zacks Consensus Estimate of $276 million by 5.5%.

Driven by strength in its reportable segments, the top line increased 21.6% from $239.5 million registered in the prior-year quarter. Revenues from the Energy and Metal Coatings segments increased 20.2% and 22.7% year over year, respectively.

Backlog & Bookings

Bookings in third-quarter fiscal 2020 were up 24.8% year over year to $263.7 million.

At the end of fiscal third quarter, the company’s total backlog was $274.5 million, down 10.8% from $307.8 million in the year-ago quarter. Of the existing backlog, 36% will be delivered outside the United States.
 

AZZ Inc. Price, Consensus and EPS Surprise

 

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 increased 47% to $33.4 million from the year-ago figure of $22.7 million.

Selling, general and administrative expenses came in at $34 million, up from $27 million in the prior-year quarter.

Interest expenses fell 10.8% to $3.3 million from $3.7 million in the prior-year quarter.

Financial Highlights

Cash and cash equivalents as of Nov 30, 2019 amounted to $14.3 million compared with $17.4 million in the year-ago period.

Long-term debt (net) was $254.8 million as of Nov 30, 2019 compared with $240.7 million on Feb 28, 2019.

Net cash used in operating activities at the end of first nine months of 2019 was $72 million compared with $58.1 million in the corresponding period of 2018.

Guidance

The company reaffirmed its fiscal 2020 earnings per share guidance in the range of $2.60-$2.90, whose midpoint of $2.75 is lower than the Zacks Consensus Estimate of $2.79 for fiscal 2020. It expects revenues guidance in the range of $1,020-$1,060 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 ETN reported third-quarter 2019 earnings of $1.52 per share, which surpassed the Zacks Consensus Estimate by a penny.

Regal Beloit Corporation RBC delivered better-than-expected results for the third quarter of 2019, with earnings surpassing estimates by 1.5%.

Emerson Electric Co’s EMR fourth-quarter fiscal 2019 (ended Sep 30, 2019) earnings of $1.07 per share were in line with the Zacks Consensus Estimate.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AZZ Inc. (AZZ) : Free Stock Analysis Report
 
Emerson Electric Co. (EMR) : Free Stock Analysis Report
 
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
 
Regal Beloit Corporation (RBC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research