The 10-second takeaway
For the quarter ended May 31 (Q1), AZZ missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share contracted. GAAP earnings per share dropped.
Margins shrank across the board.
AZZ chalked up revenue of $183.2 million. The five analysts polled by S&P Capital IQ hoped for revenue of $197.9 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $127.1 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 $0.56. The five earnings estimates compiled by S&P Capital IQ averaged $0.61 per share. Non-GAAP EPS of $0.56 for Q1 were 11% lower than the prior-year quarter's $0.63 per share. GAAP EPS of $0.57 for Q1 were 9.5% lower than the prior-year quarter's $0.63 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 27.7%, 210 basis points worse than the prior-year quarter. Operating margin was 15.2%, 300 basis points worse than the prior-year quarter. Net margin was 7.9%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $201.1 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $855.3 million. The average EPS estimate is $2.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 797 members out of 819 rating the stock outperform, and 22 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give AZZ a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AZZ is buy, with an average price target of $54.00.
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