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AZZ Q4 Earnings & Revenues Miss Estimates, Backlog Down Y/Y
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AZZ Incorporated (AZZ - Free Report) reported earnings per share of 15 cents in fourth-quarter fiscal 2018 (ended Feb 28, 2018), missing the Zacks Consensus Estimate of 39 cents by 61.54%.
Excluding one-time adjustments, the company reported GAAP earnings of 90 cents, reflecting a 91.5% growth from year-ago quarter’s tally.
Total Revenue
AZZ posted fourth-quarter fiscal 2018 revenues of $200.7 million, missing the Zacks Consensus Estimate of $205 million by 2%.
Quarterly revenues increased 8.9% from $184.3 million in the prior-year quarter. In the fourth quarter, net sales of Energy and Metal Coatings segments increased 0.9% & 19.1%, respectively, on a year-over-year basis.
AZZ's backlog at the end of fiscal 2018 was $265.4 million, down 16.5% from $317.9 million a year ago due to a book to bill ratio of 0.92.
In fiscal 2018, order booking of $746.5 million was down 13.1% from $858.9 million booked in the year-ago period.
Quarterly Highlights
Total operating income in the quarter under review declined 56.4% to $9.3 million from $21.3 million in the year-ago quarter.
Selling, general and administrative expenses came in at $28.7 million, up 12.5% from $25.5 million in the prior-year quarter.
Interest expenses in fourth-quarter fiscal 2018 increased to $3.59 million from $3.57 million in the prior-year quarter.
Acquisitions & Expansions
AZZ made few acquisitions and undertook expansions to boost segment businesses and end-marketing strategies.
The acquisitions of Powergrid Solutions, Inc. (“PSI”), Enhanced Powder Coating Ltd. (“EPC”) and Rogers Brothers Company will enable the expansion of the Metal Coatings segment and Electrical Solutions business of the Energy segment.
Moreover, to augment the Coating segment, the company built a powder coating facility in Crowley, TX. For the Energy segment, the company acquired the assets of Lectrus. AZZ projects favorable results from these initiatives in the upcoming quarters.
Guidance
The company issued fiscal 2019 earnings per fully diluted share guidance in the range of $1.75-$2.25. AZZ provided sales guidance in the range of $900-$960 million.
Eaton Corporation’s (ETN - Free Report) earnings per share of $1.10 in first-quarter 2018 topped the Zacks Consensus Estimate of $1.06 by 3.8%.
A. O. Smith Corporation (AOS - Free Report) reported first-quarter 2018 earnings per share of 60 cents, ahead of the Zacks Consensus Estimate of 58 cents.
Rexnord Corporation reported better-than-expected results for fourth-quarter fiscal 2018 (ended Mar 31, 2018), delivering positive earnings and sales surprise of 7.7% and 4.2%, respectively.
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AZZ Q4 Earnings & Revenues Miss Estimates, Backlog Down Y/Y
AZZ Incorporated (AZZ - Free Report) reported earnings per share of 15 cents in fourth-quarter fiscal 2018 (ended Feb 28, 2018), missing the Zacks Consensus Estimate of 39 cents by 61.54%.
Excluding one-time adjustments, the company reported GAAP earnings of 90 cents, reflecting a 91.5% growth from year-ago quarter’s tally.
Total Revenue
AZZ posted fourth-quarter fiscal 2018 revenues of $200.7 million, missing the Zacks Consensus Estimate of $205 million by 2%.
Quarterly revenues increased 8.9% from $184.3 million in the prior-year quarter. In the fourth quarter, net sales of Energy and Metal Coatings segments increased 0.9% & 19.1%, respectively, 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
AZZ's backlog at the end of fiscal 2018 was $265.4 million, down 16.5% from $317.9 million a year ago due to a book to bill ratio of 0.92.
In fiscal 2018, order booking of $746.5 million was down 13.1% from $858.9 million booked in the year-ago period.
Quarterly Highlights
Total operating income in the quarter under review declined 56.4% to $9.3 million from $21.3 million in the year-ago quarter.
Selling, general and administrative expenses came in at $28.7 million, up 12.5% from $25.5 million in the prior-year quarter.
Interest expenses in fourth-quarter fiscal 2018 increased to $3.59 million from $3.57 million in the prior-year quarter.
Acquisitions & Expansions
AZZ made few acquisitions and undertook expansions to boost segment businesses and end-marketing strategies.
The acquisitions of Powergrid Solutions, Inc. (“PSI”), Enhanced Powder Coating Ltd. (“EPC”) and Rogers Brothers Company will enable the expansion of the Metal Coatings segment and Electrical Solutions business of the Energy segment.
Moreover, to augment the Coating segment, the company built a powder coating facility in Crowley, TX. For the Energy segment, the company acquired the assets of Lectrus. AZZ projects favorable results from these initiatives in the upcoming quarters.
Guidance
The company issued fiscal 2019 earnings per fully diluted share guidance in the range of $1.75-$2.25. AZZ provided sales guidance in the range of $900-$960 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 Manufacturing – Electronics Releases
Eaton Corporation’s (ETN - Free Report) earnings per share of $1.10 in first-quarter 2018 topped the Zacks Consensus Estimate of $1.06 by 3.8%.
A. O. Smith Corporation (AOS - Free Report) reported first-quarter 2018 earnings per share of 60 cents, ahead of the Zacks Consensus Estimate of 58 cents.
Rexnord Corporation reported better-than-expected results for fourth-quarter fiscal 2018 (ended Mar 31, 2018), delivering positive earnings and sales surprise of 7.7% and 4.2%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>