The 10-second takeaway
For the quarter ended Aug. 31 (Q2), AZZ beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
AZZ reported revenue of $153.4 million. The five analysts polled by S&P Capital IQ foresaw a top line of $146.4 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $114.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The five earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.62 for Q2 were 63% higher than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.2%, 170 basis points better than the prior-year quarter. Operating margin was 18.0%, 170 basis points better than the prior-year quarter. Net margin was 10.3%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $146.1 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $568.2 million. The average EPS estimate is $2.08.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 772 members out of 791 rating the stock outperform, and 19 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 give AZZ a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AZZ is outperform, with an average price target of $36.50.
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