The 10-second takeaway
For the quarter ended Nov. 30 (Q3), AZZ met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
AZZ booked revenue of $149.7 million. The two analysts polled by S&P Capital IQ expected to see revenue of $148.4 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $116.5 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 $0.60. The five earnings estimates compiled by S&P Capital IQ forecast $0.59 per share. GAAP EPS of $0.60 for Q3 were 50% higher than the prior-year quarter's $0.40 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 30.1%, 370 basis points better than the prior-year quarter. Operating margin was 18.1%, 140 basis points better than the prior-year quarter. Net margin was 10.3%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $153.3 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $586.3 million. The average EPS estimate is $2.35.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 778 members out of 799 rating the stock outperform, and 21 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 213 give AZZ a green thumbs-up, and four 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 $40.33.
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