AZZ's Q2 Earnings Surpass Estimates, Sales Decrease Y/Y
AZZ Inc. AZZ reported second-quarter fiscal 2024 (ended Aug 31, 2023) adjusted earnings of $1.27 per share, which surpassed the Zacks Consensus Estimate of 82 cents by 54.9%. The bottom line also increased 5% from the year-ago quarter’s earnings.
The company’s GAAP earnings per share from continuing operations in the reported quarter was 97 cents, up 4.3% from the prior-year quarter.
Total Sales
Its total sales amounted to $398.5 million, surpassing the Zacks Consensus Estimate of $377 million by 5.7%. The top line was, however, down 2% from the prior-year quarter.
AZZ Inc. Price, Consensus and EPS Surprise
AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote
Segment Performance
Metal Coating: Sales from the segment increased 2.4% to $169.8 million from $165.8 million in the prior-year quarter. The year-over-year improvement was due to higher volume and increased selling price.
Precoat Metal: The segment generated sales of $228.7 million in the reported quarter, down 5% from the prior-year quarter. The segment’s fall in sales can be attributed to lower volume in HVAC, transportation, and certain construction end markets.
Highlights of the Release
The operating income in the fiscal second quarter was down 4.9% year over year to $61 million.
AZZ incurred interest expenses of $27.8 million, down 1.3% from the year-ago period.
Financial Position
As of Aug 31, 2023, the company had cash and cash equivalents of $2.1 million compared with $2.8 million as of Feb 28, 2023.
Total capital expenditure in the reported quarter was $25.7 million, an increase from $15.2 million in the year-ago quarter.
The net cash provided by operating activities was $118.3 million, an increase from $91.5 million as of Feb 28, 2023.
The company’s long-term debt in the reported quarter was $1 billion compared with $1.06 billion as of Feb 28, 2023.
The company returned $7.9 million to its shareholders as dividends during the fiscal second quarter.
Zacks Rank
AZZ currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Sector Releases
Alcoa Corporation AA is scheduled to announce third-quarter 2023 results on Oct 18 after market close. The Zacks Consensus Estimate for third-quarter 2023 loss is pegged at $1.04 per share.
AA’s long-term (three to five years) earnings growth is projected at 11.2%.
A. O. Smith Corporation AOS is scheduled to announce third-quarter 2023 results on Oct 26 before the market opens. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at 77 cents per share.
AOS’ long-term earnings growth is projected at 9%. The company delivered an average earnings surprise of 10.48% in the last four quarters.
Emerson Electric Co. EMR is expected to announce third-quarter 2023 results on Oct 30. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.30 per share.
EMR’s long-term earnings growth is projected at 10.5%. The company delivered an average earnings surprise of 7.36% in the last four quarters.
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