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AZZ Q3 Earnings In Line With Estimates, Revenues Surpass
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AZZ Inc. (AZZ - Free Report) reported earnings per share of 84 cents in third-quarter fiscal 2020 (ended Nov 30, 2019), which is in line with the Zacks Consensus Estimate. Moreover, the bottom line improved significantly from the year-ago quarter’s earnings of 59 cents by 42.4%.
Total Revenues
In the quarter under review, the company reported revenues of $291.1 million that surpassed the Zacks Consensus Estimate of $276 million by 5.5%.
Driven by strength in its reportable segments, the top line increased 21.6% from $239.5 million registered in the prior-year quarter. Revenues from the Energy and Metal Coatings segments increased 20.2% and 22.7% year over year, respectively.
Backlog & Bookings
Bookings in third-quarter fiscal 2020 were up 24.8% year over year to $263.7 million.
At the end of fiscal third quarter, the company’s total backlog was $274.5 million, down 10.8% from $307.8 million in the year-ago quarter. Of the existing backlog, 36% will be delivered outside the United States.
Total operating income in the quarter increased 47% to $33.4 million from the year-ago figure of $22.7 million.
Selling, general and administrative expenses came in at $34 million, up from $27 million in the prior-year quarter.
Interest expenses fell 10.8% to $3.3 million from $3.7 million in the prior-year quarter.
Financial Highlights
Cash and cash equivalents as of Nov 30, 2019 amounted to $14.3 million compared with $17.4 million in the year-ago period.
Long-term debt (net) was $254.8 million as of Nov 30, 2019 compared with $240.7 million on Feb 28, 2019.
Net cash used in operating activities at the end of first nine months of 2019 was $72 million compared with $58.1 million in the corresponding period of 2018.
Guidance
The company reaffirmed its fiscal 2020 earnings per share guidance in the range of $2.60-$2.90, whose midpoint of $2.75 is lower than the Zacks Consensus Estimate of $2.79 for fiscal 2020. It expects revenues guidance in the range of $1,020-$1,060 million.
Eaton Corporation (ETN - Free Report) reported third-quarter 2019 earnings of $1.52 per share, which surpassed the Zacks Consensus Estimate by a penny.
Regal Beloit Corporation (RBC - Free Report) delivered better-than-expected results for the third quarter of 2019, with earnings surpassing estimates by 1.5%.
Emerson Electric Co’s (EMR - Free Report) fourth-quarter fiscal 2019 (ended Sep 30, 2019) earnings of $1.07 per share were in line with the Zacks Consensus Estimate.
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
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AZZ Q3 Earnings In Line With Estimates, Revenues Surpass
AZZ Inc. (AZZ - Free Report) reported earnings per share of 84 cents in third-quarter fiscal 2020 (ended Nov 30, 2019), which is in line with the Zacks Consensus Estimate. Moreover, the bottom line improved significantly from the year-ago quarter’s earnings of 59 cents by 42.4%.
Total Revenues
In the quarter under review, the company reported revenues of $291.1 million that surpassed the Zacks Consensus Estimate of $276 million by 5.5%.
Driven by strength in its reportable segments, the top line increased 21.6% from $239.5 million registered in the prior-year quarter. Revenues from the Energy and Metal Coatings segments increased 20.2% and 22.7% year over year, respectively.
Backlog & Bookings
Bookings in third-quarter fiscal 2020 were up 24.8% year over year to $263.7 million.
At the end of fiscal third quarter, the company’s total backlog was $274.5 million, down 10.8% from $307.8 million in the year-ago quarter. Of the existing backlog, 36% will be delivered outside the United States.
AZZ Inc. Price, Consensus and EPS Surprise
AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote
Quarterly Highlights
Total operating income in the quarter increased 47% to $33.4 million from the year-ago figure of $22.7 million.
Selling, general and administrative expenses came in at $34 million, up from $27 million in the prior-year quarter.
Interest expenses fell 10.8% to $3.3 million from $3.7 million in the prior-year quarter.
Financial Highlights
Cash and cash equivalents as of Nov 30, 2019 amounted to $14.3 million compared with $17.4 million in the year-ago period.
Long-term debt (net) was $254.8 million as of Nov 30, 2019 compared with $240.7 million on Feb 28, 2019.
Net cash used in operating activities at the end of first nine months of 2019 was $72 million compared with $58.1 million in the corresponding period of 2018.
Guidance
The company reaffirmed its fiscal 2020 earnings per share guidance in the range of $2.60-$2.90, whose midpoint of $2.75 is lower than the Zacks Consensus Estimate of $2.79 for fiscal 2020. It expects revenues guidance in the range of $1,020-$1,060 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 Releases
Eaton Corporation (ETN - Free Report) reported third-quarter 2019 earnings of $1.52 per share, which surpassed the Zacks Consensus Estimate by a penny.
Regal Beloit Corporation (RBC - Free Report) delivered better-than-expected results for the third quarter of 2019, with earnings surpassing estimates by 1.5%.
Emerson Electric Co’s (EMR - Free Report) fourth-quarter fiscal 2019 (ended Sep 30, 2019) earnings of $1.07 per share were in line with the Zacks Consensus Estimate.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>