AZZ (NYSE:AZZ) Releases FY 2027 Earnings Guidance

AZZ (NYSE:AZZ) updated its FY 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 7.000-7.300 for the period, compared to the consensus earnings per share estimate of 7.070. The company issued revenue guidance of $1.8 billion-$1.9 billion, compared to the consensus revenue estimate of $1.8 billion.

Wall Street Analyst Weigh In

AZZ has been the topic of a number of recent analyst reports. Barclays set a $140.00 target price on shares of AZZ in a report on Wednesday. Wall Street Zen cut shares of AZZ from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Weiss Ratings reiterated a “buy (b)” rating on shares of AZZ in a research note on Tuesday, October 6th. Wells Fargo & Company lifted their price objective on shares of AZZ from $138.00 to $144.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Finally, B. Riley Financial boosted their price objective on shares of AZZ from $169.00 to $170.00 and gave the stock a “buy” rating in a research note on Monday, July 13th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $152.20.

AZZ Stock Performance

Shares of AZZ stock opened at $137.30 on Wednesday. AZZ has a 52 week low of $94.61 and a 52 week high of $162.20. The company has a market capitalization of $4.13 billion, a price-to-earnings ratio of 20.93 and a beta of 1.13. The company has a 50-day simple moving average of $140.18 and a 200 day simple moving average of $141.98. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.39 and a current ratio of 1.92.

AZZ (NYSE:AZZ) last issued its quarterly earnings data on Tuesday, October 13th. The industrial products company reported $2.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.86 by $0.14. AZZ had a net margin of 11.83% and a return on equity of 14.18%. The firm had revenue of $486.89 million during the quarter, compared to the consensus estimate of $463.44 million. During the same period last year, the business posted $1.55 earnings per share. The business’s revenue for the quarter was up 16.7% compared to the same quarter last year. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. On average, sell-side analysts predict that AZZ will post 7.06 earnings per share for the current year.

AZZ Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 5th. Stockholders of record on Monday, October 19th will be paid a dividend of $0.24 per share. The ex-dividend date is Monday, October 19th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 0.7%. AZZ’s dividend payout ratio (DPR) is 14.63%.

Insider Activity at AZZ

In other AZZ news, COO Bryan Lee Stovall sold 2,677 shares of the company’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $150.07, for a total value of $401,737.39. Following the transaction, the chief operating officer directly owned 35,000 shares of the company’s stock, valued at $5,252,450. This represents a 7.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Jeffrey Vellines sold 4,220 shares of the company’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $153.55, for a total value of $647,981.00. Following the completion of the transaction, the chief operating officer directly owned 1,834 shares in the company, valued at approximately $281,610.70. This represents a 69.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.70% of the company’s stock.

Key AZZ News

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: Results exceeded expectations: Adjusted earnings were $2.00 per share, ahead of consensus estimates ranging from $1.82 to $1.87, while revenue rose 16.7% year over year to $486.9 million, above estimates of approximately $463 million to $468 million. AZZ Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Broad-based operating growth: Metal Coatings sales increased 22.9% to $233.5 million and Precoat Metals sales grew 11.5% to $253.4 million. Adjusted EBITDA rose 22.8% to $110.9 million, with the margin expanding to 22.8% from 21.3%. AZZ Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Improved cash generation and outlook: Operating cash flow jumped 76.1% to $102.8 million, and management raised fiscal 2027 guidance. AZZ also completed its Seattle Galvanizing acquisition and repurchased $20 million of stock, signaling confidence in cash flow and shareholder value.
• Positive Sentiment: Analyst upside remains: Recent analyst price targets have a median of $155, with a range of $152 to $169, above the stock’s recent trading level. AZZ Consensus Price Target
• Neutral Sentiment: AZZ paid its regular $0.24-per-share dividend during the quarter. The company’s net leverage ratio remained moderate at 1.3 times trailing-twelve-month adjusted EBITDA.
• Negative Sentiment: GAAP net income declined 34.6% and GAAP diluted EPS fell to $1.94 because the prior-year period benefited from a one-time gain related to AZZ’s AVAIL joint venture. This comparison could temper the headline strength, although adjusted net income increased 28.1%.
• Negative Sentiment: Recent insider activity cited by Quiver Quantitative included two executive stock sales and no insider purchases in the past six months, a modest cautionary signal.

AZZ Company Profile

AZZ Inc is a provider of metal coating solutions serving customers primarily in North America. The company operates through its Metal Coatings and Precoat Metals segments, helping protect and enhance the performance, appearance, and durability of steel and other metal products used across a range of industries.

Through its Metal Coatings segment, AZZ provides hot-dip galvanizing, powder coating, anodizing, plating, and related coating services. These treatments are used for corrosion protection and finishing applications involving infrastructure, construction, industrial, transportation, and other metal products.

Precoat Metals provides coil coating services for steel and aluminum products before they are fabricated.