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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of AZZ. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.