We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AZZ Issues 2025 Guidance, Focuses on Working Capital Improvements
Read MoreHide Full Article
AZZ Inc. (AZZ - Free Report) announced its guidance for fiscal 2025 and reaffirmed its previously issued projection for fiscal 2024. Fiscal 2025 refers to the 12-month period beginning Mar 1, 2024, and ending Feb 28, 2025.
Last month, the company reported third-quarter fiscal 2024 earnings of $1.19 per share, which surpassed the Zacks Consensus Estimate of 99 cents by 20.2%. Total revenues for the reported quarter came in at $382 million, which outpaced the Zacks Consensus Estimate of $378 million by 0.9%.
Highlights of the Guidance
The company’s objective in the next fiscal year will be to drive sustainable, profitable growth and continue to generate strong free cash flow. AZZ expects capital expenditures for fiscal 2025 to be in the $100-$120 million range, which includes $40-$50 million for the greenfield plant construction in Washington, MO. The remaining balance is to be allocated to maintenance, productivity enhancements, and environmental, health and safety initiatives.
The company expects to continue to focus on working capital improvements, as well as enhancing incremental operational productivity across both its segments, while further optimizing its corporate structure.
AZZ reaffirms fiscal 2024 sales in the range of $1.45-$1.55 billion. The metric is expected to be in the range of $1.5-$1.6 billion for fiscal 2025. Adjusted EBITDA for fiscal 2025 is expected in the band of $300-$350 million. The company reaffirms adjusted diluted earnings per share for fiscal 2024 in the range of $4.15-$4.35, and the same for fiscal 2025 is expected in the band of $4.25-$4.75.
AZZ expects to exceed its $100 million targeted debt paydown in fiscal 2024. In fiscal 2025, it is expected to continue to allocate its strong cash flow generated from operations to further deleverage the company by approximately $60-$100 million.
Price Performance
In the past three months, AZZ’s shares have risen 35.8% compared with the industry’s growth of 14.5%.
Enersys’ long-term (three to five-year) earnings growth rate is 14%. The Zacks Consensus Estimate for ENS’ fiscal 2024 earnings is pegged at $8.56 per share, implying a year-over-year increase of 60.3%.
Powell Industries’ long-term earnings growth rate is 14%. The Zacks Consensus Estimate for POWL’s fiscal 2024 earnings is pegged at $7.54 per share, implying a year-over-year increase of 83%.
Eaton’s long-term earnings growth rate is 11.78%. The Zacks Consensus Estimate for ETN’s 2024 earnings is pegged at $10.07 per share, implying a year-over-year increase of 10.4%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AZZ Issues 2025 Guidance, Focuses on Working Capital Improvements
AZZ Inc. (AZZ - Free Report) announced its guidance for fiscal 2025 and reaffirmed its previously issued projection for fiscal 2024. Fiscal 2025 refers to the 12-month period beginning Mar 1, 2024, and ending Feb 28, 2025.
Last month, the company reported third-quarter fiscal 2024 earnings of $1.19 per share, which surpassed the Zacks Consensus Estimate of 99 cents by 20.2%. Total revenues for the reported quarter came in at $382 million, which outpaced the Zacks Consensus Estimate of $378 million by 0.9%.
Highlights of the Guidance
The company’s objective in the next fiscal year will be to drive sustainable, profitable growth and continue to generate strong free cash flow. AZZ expects capital expenditures for fiscal 2025 to be in the $100-$120 million range, which includes $40-$50 million for the greenfield plant construction in Washington, MO. The remaining balance is to be allocated to maintenance, productivity enhancements, and environmental, health and safety initiatives.
The company expects to continue to focus on working capital improvements, as well as enhancing incremental operational productivity across both its segments, while further optimizing its corporate structure.
AZZ reaffirms fiscal 2024 sales in the range of $1.45-$1.55 billion. The metric is expected to be in the range of $1.5-$1.6 billion for fiscal 2025. Adjusted EBITDA for fiscal 2025 is expected in the band of $300-$350 million. The company reaffirms adjusted diluted earnings per share for fiscal 2024 in the range of $4.15-$4.35, and the same for fiscal 2025 is expected in the band of $4.25-$4.75.
AZZ expects to exceed its $100 million targeted debt paydown in fiscal 2024. In fiscal 2025, it is expected to continue to allocate its strong cash flow generated from operations to further deleverage the company by approximately $60-$100 million.
Price Performance
In the past three months, AZZ’s shares have risen 35.8% compared with the industry’s growth of 14.5%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
AZZ currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the same industry are Enersys (ENS - Free Report) and Powell Industries (POWL - Free Report) , both sporting a Zacks Rank #1 (Strong Buy,) and Eaton Corporation plc (ETN - Free Report) , carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enersys’ long-term (three to five-year) earnings growth rate is 14%. The Zacks Consensus Estimate for ENS’ fiscal 2024 earnings is pegged at $8.56 per share, implying a year-over-year increase of 60.3%.
Powell Industries’ long-term earnings growth rate is 14%. The Zacks Consensus Estimate for POWL’s fiscal 2024 earnings is pegged at $7.54 per share, implying a year-over-year increase of 83%.
Eaton’s long-term earnings growth rate is 11.78%. The Zacks Consensus Estimate for ETN’s 2024 earnings is pegged at $10.07 per share, implying a year-over-year increase of 10.4%.