LONDON, UK / ACCESSWIRE / April 23, 2018 / Active-Investors has a free review on AZZ Inc. (NYSE: AZZ) following the Company's announcement that it will begin trading ex-dividend on April 24, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on April 23, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on AZZ:
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On April 06, 2018, AZZ announced that its Board of Directors has authorized a quarterly cash dividend in the amount of $0.17 per share on the Company's outstanding shares of common stock. The dividend is payable on May 09, 2018, to shareholders of record as of the close of business on April 25, 2018.
AZZ'S indicated dividend represents a yield of 1.50%, which is substantially higher than the average dividend yield of 1.12% for the Industrial Goods sector. The Company has raised dividend for four consecutive years.
AZZ has a dividend payout ratio of 42.2%, which denotes that the Company spends approximately $0.42 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, AZZ is forecasted to report earnings of $2.61 for the next year, which is more than three times higher than the Company's annualized dividend of $0.68 per share.
For the six-month period ended August 31, 2017, AZZ's net cash provided by operating activities was $2.8 million, net cash used in investing activities was $26.7 million, net cash provided by financing activities was $16.0 million, and an increase of $0.2 million from the net effect of exchange rate changes on cash, resulting in a net decrease in cash and cash equivalents of $7.8 million. The Company's working capital was $204.8 million as of August 31, 2017, compared to $166.2 million at August 31, 2016.
On April 19, 2018, AZZ announced that it has completed its restatement and filed its amended previously issued audited Form 10-K and the unaudited Quarterly Reports on Form 10-Q for the first and second quarters of FY18. The restatements resulted from a correction to the accounting method historically used by the Company to record revenues for certain contracts within its Energy Segment. AZZ determined that for certain contracts for which revenue was recognized upon contract completion and transfer of title, the Company instead should have applied the percentage-of-completion method in accordance with ASC 605-35. The Company determined that the impact of applying the percentage-of-completion method to certain of its revenue contracts was materially different from its previously reported results primarily for certain current asset balance sheet accounts under its historical practice.
The decision to record revenues through the percentage of completion method can be beneficial for the Company as this method recognizes revenue over time compared to the completed contract method, where the Company has to wait until the contract is finished. For e.g., through the percentage-of-completion method, AZZ would require recognizing revenue on a contract which is 75% completed, unlike the older method where it would not have recognized any contract revenue until fully completed.
Recent Development for AZZ
On March 23, 2018, AZZ announced that it has completed the purchase of certain assets of Lectrus Corporation pursuant to the Court entering the Sale Order on March 20, 2018. The Chattanooga, Tennessee facility of Lectrus was included in the assets acquired by AZZ Enclosure Systems – Chattanooga LLC, a Delaware limited liability company. The purchase price was $8 million plus certain cure costs pursuant to the Bankruptcy Code, which amount to approximately $215,000.
Stock Performance Snapshot
April 20, 2018 - At Friday's closing bell, AZZ Inc.'s stock rose 1.00%, ending the trading session at $45.65.
Volume traded for the day: 247.24 thousand shares, which was above the 3-month average volume of 129.07 thousand shares.
Stock performance in the last month – up 4.10%
After last Friday's close, AZZ Inc.'s market cap was at $1.20 billion.
Price to Earnings (P/E) ratio was at 23.17.
The stock has a dividend yield of 1.49%.
The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.
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