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AZZ Q1 Earnings & Revenues Beat Estimates, Bookings Down Y/Y
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AZZ Inc. (AZZ - Free Report) reported earnings per share of 81 cents in first-quarter fiscal 2020 (ended May 31, 2019). The reported figure surpassed the Zacks Consensus Estimate of 71 cents by 14.1%. Moreover, the bottom line improved significantly from the year-ago earnings of 60 cents by 34.4%.
Total Revenues
In the quarter under review, the company reported revenues of $289.1 million, which surpassed the Zacks Consensus Estimate of $286 million by 1.2%.
Driven by strength in its reportable segments, the top line increased 10.2% from $262.3 million registered in the prior-year quarter. Revenues from Energy and Metal Coatings segments increased a respective 13.6% and 5.9% year over year.
Bookings in first-quarter fiscal 2020 were down 13.3% year over year to $256.3 million. In the first half of 2019, the company booked two big Chinese orders.
At the end of first-quarter fiscal 2020, its total backlog was $300.1 million, down 1.6% from $304.9 million a year ago. Of the existing backlog, 44% will be delivered outside the United States.
Quarterly Highlights
Total operating income in the quarter increased 30.4% to $30.9 million from the year-ago figure of $23.7 million.
Selling, general and administrative expenses came in at $35.1 million, increasing marginally from $35 million in the prior-year quarter.
Interest expenses decreased 7.9% to $3.6 million from $3.8 million in the prior-year quarter.
Financial Highlights
Cash and cash equivalents as of May 31, 2019 amounted to $24 million compared with $20.9 million in the corresponding period of 2018.
Long-term debt (net) was $296.8 million as of May 31, 2019 compared with $240.7 million on Feb 28, 2019.
Net cash used in operating activities during the first quarter of fiscal 2020 was $18.6 million compared with $12.4 million in first-quarter fiscal 2019.
Guidance
The company reaffirmed its fiscal 2020 EPS guidance in the range of $2.25-$2.75. It expects its sales guidance in the range of $950-$1,030 million.
Eaton Corp. (ETN - Free Report) is expected to release second-quarter 2019 results on Jul 30. The Zacks Consensus Estimate for the quarter is pegged at $1.52.
A. O. Smith Corp. (AOS - Free Report) is expected to release second-quarter 2019 results on Jul 30. The Zacks Consensus Estimate for the quarter to be reported is pegged at 63 cents.
Enersys (ENS - Free Report) is expected to release first-quarter fiscal 2020 results on Aug 14. The Zacks Consensus Estimate for the quarter is pegged at $1.32.
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AZZ Q1 Earnings & Revenues Beat Estimates, Bookings Down Y/Y
AZZ Inc. (AZZ - Free Report) reported earnings per share of 81 cents in first-quarter fiscal 2020 (ended May 31, 2019). The reported figure surpassed the Zacks Consensus Estimate of 71 cents by 14.1%. Moreover, the bottom line improved significantly from the year-ago earnings of 60 cents by 34.4%.
Total Revenues
In the quarter under review, the company reported revenues of $289.1 million, which surpassed the Zacks Consensus Estimate of $286 million by 1.2%.
Driven by strength in its reportable segments, the top line increased 10.2% from $262.3 million registered in the prior-year quarter. Revenues from Energy and Metal Coatings segments increased a respective 13.6% and 5.9% year over year.
AZZ Inc. Price, Consensus and EPS Surprise
AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote
Backlog & BookingsBookings in first-quarter fiscal 2020 were down 13.3% year over year to $256.3 million. In the first half of 2019, the company booked two big Chinese orders.
At the end of first-quarter fiscal 2020, its total backlog was $300.1 million, down 1.6% from $304.9 million a year ago. Of the existing backlog, 44% will be delivered outside the United States.
Quarterly Highlights
Total operating income in the quarter increased 30.4% to $30.9 million from the year-ago figure of $23.7 million.
Selling, general and administrative expenses came in at $35.1 million, increasing marginally from $35 million in the prior-year quarter.
Interest expenses decreased 7.9% to $3.6 million from $3.8 million in the prior-year quarter.
Financial Highlights
Cash and cash equivalents as of May 31, 2019 amounted to $24 million compared with $20.9 million in the corresponding period of 2018.
Long-term debt (net) was $296.8 million as of May 31, 2019 compared with $240.7 million on Feb 28, 2019.
Net cash used in operating activities during the first quarter of fiscal 2020 was $18.6 million compared with $12.4 million in first-quarter fiscal 2019.
Guidance
The company reaffirmed its fiscal 2020 EPS guidance in the range of $2.25-$2.75. It expects its sales guidance in the range of $950-$1,030 million.
Zacks Rank
AZZ currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Manufacturing Electronics Releases
Eaton Corp. (ETN - Free Report) is expected to release second-quarter 2019 results on Jul 30. The Zacks Consensus Estimate for the quarter is pegged at $1.52.
A. O. Smith Corp. (AOS - Free Report) is expected to release second-quarter 2019 results on Jul 30. The Zacks Consensus Estimate for the quarter to be reported is pegged at 63 cents.
Enersys (ENS - Free Report) is expected to release first-quarter fiscal 2020 results on Aug 14. The Zacks Consensus Estimate for the quarter is pegged at $1.32.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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