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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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.