AZZ (NYSE:AZZ) Announces Quarterly Earnings Results

AZZ (NYSE:AZZ) issued its earnings results on Tuesday. The industrial products company reported $2.00 earnings per share for the quarter, beating analysts’ consensus estimates of $1.86 by $0.14, FiscalAI reports. The company had revenue of $486.89 million for the quarter, compared to the consensus estimate of $463.44 million. AZZ had a return on equity of 14.18% and a net margin of 11.83%. The firm’s quarterly revenue was up 16.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.55 EPS. AZZ updated its FY 2027 guidance to 7.000-7.300 EPS.

AZZ Stock Down 0.3%

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

AZZ Announces Dividend

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

Insider Buying and Selling

In related news, COO Bryan Lee Stovall sold 2,677 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $150.07, for a total transaction of $401,737.39. Following the transaction, the chief operating officer owned 35,000 shares of the company’s stock, valued at approximately $5,252,450. This trade represents a 7.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Jeffrey Vellines sold 4,220 shares of AZZ stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $153.55, for a total transaction of $647,981.00. Following the completion of the sale, the chief operating officer owned 1,834 shares of the company’s stock, valued at $281,610.70. This trade represents a 69.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.70% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Barclays set a $140.00 price target on shares of AZZ in a report on Wednesday. Wells Fargo & Company upped their price objective on shares of AZZ from $138.00 to $144.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Wall Street Zen downgraded shares of AZZ from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Weiss Ratings reissued a “buy (b)” rating on shares of AZZ in a research note on Tuesday, October 6th. Finally, B. Riley Financial lifted their target price on shares of AZZ from $169.00 to $170.00 and gave the company 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 assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $152.20.

Key Headlines Impacting AZZ

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.

About AZZ

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.