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It's Showtime for AZZ

By Seth Jayson – Updated Apr 10, 2017 at 12:58PM

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Checking expectations

AZZ (NYSE: AZZ) is expected to report Q1 earnings on June 28. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict AZZ's revenues will grow 55.7% and EPS will wane -3.2%.

The average estimate for revenue is $197.9 million. On the bottom line, the average EPS estimate is $0.61.

Revenue details
Last quarter, AZZ notched revenue of $140.4 million. GAAP reported sales were 14% higher than the prior-year quarter's $123.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.45. GAAP EPS of $0.52 for Q4 were 13% higher than the prior-year quarter's $0.46 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 27.1%, 90 basis points better than the prior-year quarter. Operating margin was 15.3%, 90 basis points worse than the prior-year quarter. Net margin was 9.4%, much about the same as the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $863.5 million. The average EPS estimate is $2.94.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 797 members out of 818 rating the stock outperform, and 21 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give AZZ a green thumbs-up, and five 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 $51.00.

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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. 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.

Stocks Mentioned

Azz Stock Quote
$42.01 (1.13%) $0.47

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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