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AZZ's Q2 Earnings Beat, Sales Jump Y/Y, EPS View Raised

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AZZ Inc. (AZZ - Free Report) reported earnings per share of 76 cents in second-quarter fiscal 2022 (ended Aug 31, 2021). The bottom line surpassed the Zacks Consensus Estimate of 65 cents by 16.9%.

Total Revenues

In the quarter, the company reported revenues of $216.5 million, which missed the Zacks Consensus Estimate of $221 million by 2%.

Driven by strength in its reportable segments, the top line increased 6.4% from $216.5 million in the prior-year quarter. Revenues from Energy and Metal Coatings segments increased  0.6% and 10.7%, respectively, year over year.

 

AZZ Inc. Price, Consensus and EPS Surprise

AZZ Inc. Price, Consensus and EPS Surprise

AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote

Backlog & Bookings

Bookings in second-quarter fiscal 2022 increased to $231.8 million from $208.6 million a year ago. AZZ’s book-to-sales ratio was 1.07 compared with 1.03 in the year-ago period.

At the end of the fiscal second quarter, its total backlog was $201.5 million, down 4.3% from the year-ago period. The decrease in backlog is largely attributable to the completion of large orders in China. However, sequentially backlog was up $15.4 million, or 8.3%.

Quarterly Highlights

Total operating income in the quarter increased substantially to $26.5 million from the year-ago figure of $0.7 million.

Selling, general and administrative expenses were $28.6 million, increasing 6.7% from $26.8 million in the prior-year quarter.

Interest expenses decreased 28% to $1.8 million from $2.5 million.

During the quarter, the company repurchased shares worth $15 million. Year to date, AZZ has repurchased 416,279 shares of common stock, totaling $21.2 million.

Financial Highlights

Current Assets as of Aug 31, 2021, amounted to $329.1 million compared with $303.5 million as of Feb 28, 2021.

Long-term debt (net) was $182.4 million as of Aug 31, 2021, compared with $178.4 million on Feb 28, 2021.

Net cash from operating activities during the first half of fiscal 2022 was $37.8 million compared with $32.2 million in the first half of fiscal 2021.

Guidance

The company revised its fiscal 2022 EPS guidance to the range of $2.90-$3.20 per share from prior expectation of $2.65-$3.05. It expects sales in the range of $865 million to $925 million compared with prior expectation of $855 million to $935 million.

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 Manufacturing Electronics Releases

Eaton Corp. (ETN - Free Report) is expected to release third-quarter 2021 results on Nov 2. The Zacks Consensus Estimate for the quarter is pegged at $1.74.

A. O. Smith Corp. (AOS - Free Report) is going to release third-quarter 2021 results on Oct 28. The Zacks Consensus Estimate for the quarter to be reported is pegged at 67 cents.

Enersys (ENS - Free Report) is expected to release second-quarter fiscal 2022 results on Nov 10. The Zacks Consensus Estimate for the quarter is pegged at $1.06.
 


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