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AZZ Q3 Earnings & Revenues Miss Estimates, Bookings Up Y/Y
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AZZ Incorporated (AZZ - Free Report) 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.
Total Revenues
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.
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.
Quarterly Highlights
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.
Financial Highlights
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.
Guidance
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).
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 - Free Report) 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 - Free Report) 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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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%.
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AZZ Q3 Earnings & Revenues Miss Estimates, Bookings Up Y/Y
AZZ Incorporated (AZZ - Free Report) 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.
Total Revenues
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.
Quarterly Highlights
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.
Financial Highlights
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.
Guidance
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 - Free Report) , 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 - Free Report) 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 - Free Report) is expected to release fourth-quarter 2018 results on Jan 29. The company has an estimated long-term earnings growth rate of 11.3%.
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>>