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AZZ Q4 Earnings & Revenues Miss Estimates, Backlog Down Y/Y

Zacks

AZZ Incorporated AZZ reported earnings per share of 15 cents in fourth-quarter fiscal 2018 (ended Feb 28, 2018), missing the Zacks Consensus Estimate of 39 cents by 61.54%.

Excluding one-time adjustments, the company reported GAAP earnings of 90 cents, reflecting a 91.5% growth from year-ago quarter’s tally.

Total Revenue

AZZ posted fourth-quarter fiscal 2018 revenues of $200.7 million, missing the Zacks Consensus Estimate of $205 million by 2%.

Quarterly revenues increased 8.9% from $184.3 million in the prior-year quarter. In the fourth quarter, net sales of Energy and Metal Coatings segments increased 0.9% & 19.1%, respectively, 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

AZZ's backlog at the end of fiscal 2018 was $265.4 million, down 16.5% from $317.9 million a year ago due to a book to bill ratio of 0.92.

In fiscal 2018, order booking of $746.5 million was down 13.1% from $858.9 million booked in the year-ago period.

Quarterly Highlights

Total operating income in the quarter under review declined 56.4% to $9.3 million from $21.3 million in the year-ago quarter.

Selling, general and administrative expenses came in at $28.7 million, up 12.5% from $25.5 million in the prior-year quarter.

Interest expenses in fourth-quarter fiscal 2018 increased to $3.59 million from $3.57 million in the prior-year quarter.

Acquisitions & Expansions

AZZ made few acquisitions and undertook expansions to boost segment businesses and end-marketing strategies.

The acquisitions of Powergrid Solutions, Inc. (“PSI”), Enhanced Powder Coating Ltd. (“EPC”) and Rogers Brothers Company will enable the expansion of the Metal Coatings segment and Electrical Solutions business of the Energy segment.

Moreover, to augment the Coating segment, the company built a powder coating facility in Crowley, TX. For the Energy segment, the company acquired the assets of Lectrus. AZZ projects favorable results from these initiatives in the upcoming quarters.

Guidance

The company issued fiscal 2019 earnings per fully diluted share guidance in the range of $1.75-$2.25. AZZ provided sales guidance in the range of $900-$960 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 Manufacturing – Electronics Releases

Eaton Corporation’s ETN earnings per share of $1.10 in first-quarter 2018 topped the Zacks Consensus Estimate of $1.06 by 3.8%.

A. O. Smith Corporation AOS reported first-quarter 2018 earnings per share of 60 cents, ahead of the Zacks Consensus Estimate of 58 cents.

Rexnord Corporation RXN reported better-than-expected results for fourth-quarter fiscal 2018 (ended Mar 31, 2018), delivering positive earnings and sales surprise of 7.7% and 4.2%, respectively.

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