AZZ Incorporated AZZ reported earnings per share (EPS) of 59 cents in third-quarter fiscal 2019 (ended Nov 30, 2018), which lagged the Zacks Consensus Estimate of 61 cents by 3.3%. Nevertheless, the bottom line improved significantly from the year-ago quarter’s loss of a penny.
In the quarter under review, the company delivered revenues of $239.5 million, which fell short of the Zacks Consensus Estimate of $242 million by 1%.
Driven by strength in the company’s Energy segment, the top line increased 15.1% from $208.2 million registered in the prior-year quarter. Revenues at the Energy and Metal Coatings segments increased a respective 23.4% and 6.3% on a year-over-year basis.
AZZ Inc. Price, Consensus and EPS Surprise
AZZ Inc. Price, Consensus and EPS Surprise | AZZ Inc. Quote
Backlogs & Booking
Bookings in third-quarter fiscal 2019 were up 17.5% year over year to $211.3 million, while the book-to-revenue ratio was at 0.88.
At the end of third-quarter fiscal 2019, the company’s total backlog was $307.8 million, up 8.7% from $283.2 million in the year-ago quarter. Of the existing backlog, 54% will be delivered outside the United States.
Total operating income in the quarter increased massively to $22.8 million from the year-ago quarter’s figure of $1.6 million.
Selling, general and administrative expenses came in at $27 million, down 8.7% from $30 million in the prior-year quarter.
Interest expenses increased 6% to $3.7 million from $3.5 million in the prior-year quarter.
Cash and cash equivalents as of Nov 30, 2018, amounted to $17.4 million compared with $10.7 million as of Feb 28, 2018.
Long-term debt (net) was $272.7 million as of Nov 30, 2018, compared with $286.6 million as of Feb 28, 2018.
Net cash provided by continuing operations activities at the end of nine six months of 2018 was $60.4 million, up from $38.7 million at the end of the first nine months of 2017.
AZZ narrowed its fiscal 2019 EPS guidance to the range of $1.95-$2.20 from the prior range of $1.90-$2.25. Also, it narrowed its sales guidance to the range of $940-$960 million from the previous range of $930-$970 million.
Zacks Rank & Stock to Consider
AZZ currently carries a Zacks Rank #5 (Strong Sell).
A better-ranked stock in the same space is Enersys ENS, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enersys has an estimated long-term earnings growth rate of 10%. The company has an average four-quarter positive earnings surprise of 2.8%.
Upcoming Manufacturing Electronics Releases
Eaton Corp. ETN is expected to release fourth-quarter 2018 results on Jan 31, 2019. The company has an estimated long-term earnings growth rate of 10%.
A. O. Smith Corp. AOS is expected to release fourth-quarter 2018 results on Jan 29. The company has an estimated long-term earnings growth rate of 11.3%.
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