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AZZ Q2 Earnings & Revenues Miss Estimates, Backlog Up Y/Y

Zacks

AZZ Incorporated AZZ posted earnings per share (EPS) of 43 cents in second-quarter fiscal 2019 (ended Aug 31, 2018), which lagged the Zacks Consensus Estimate of 45 cents by 4.44%. Nevertheless, the bottom line improved 13.1% year over year.

Total Revenues

In the quarter under review, the company delivered revenues of $222.8 million, which missed the Zacks Consensus Estimate of $231 million by 3.5%.

The top line increased 13.5% from $196.3 million in the prior-year quarter. Revenues in the Energy and Metal Coatings segments increased 9.5% and 17.4% on a year-over-year basis, respectively.

AZZ Inc. Price, Consensus and EPS Surprise

AZZ Inc. Price, Consensus and EPS Surprise | AZZ Inc. Quote


Backlogs & Booking

Bookings in second-quarter fiscal 2019 were $253.9 million and the book-to-revenue ratio was at 1.13.

At the end of second-quarter fiscal 2019, the company’s total backlog was $ 336 million, up 12% from $300.1 million in the year-ago quarter. Of the existing backlog, 54% will be delivered outside the United States.

Quarterly Highlights

Total operating income in the quarter inched down 1.6% to $17.1 million from the year-ago quarter’s figure.

Selling, general and administrative expenses came in at $29.7 million, up 12.8% from $26.4 million in the prior-year quarter.

Interest expenses increased 17% to $3.9 million from $3.4 million in the prior-year quarter.

Financial Highlights

Cash and cash equivalents as of Aug 31, 2018 was of $9.2 million compared with $20.8 million as of Feb 28, 2018.

Long-term debt was $295.7 million as of Aug 31, 2018 compared with $286.6 million as of Feb 28, 2018.

Net cash provided by continuing operations activities at the end of first six months of 2018 was $17.5 million, up from $2.8 million at the end of first six months of 2017.

Guidance

The company revised fiscal 2019 EPS guidance in the range to $1.90-$2.25 from $1.75- $2.25. Also, it raised sales guidance to the range to $930-$970 million from to $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.

Upcoming Manufacturing Electronics Releases

Eaton Corp. ETN is expected to release third-quarter 2018 results on Oct 30, 2018. The Zacks Consensus Estimate for 2018 earnings moved up 2.7% to $5.36 in the past 90 days.

A. O. Smith Corp. AOS is expected to release third-quarter 2018 results on Oct 30. The Zacks Consensus Estimate for 2018 earnings inched up 0.4% to $2.61 in the past 90 days.

Emerson Electric Co. EMR is expected to report fourth-quarter fiscal 2018 results on Nov 6. The Zacks Consensus Estimate for 2018 earnings inched up 0.9% to $3.21 in the past 90 days.

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