AZZ Q1 Earnings & Revenues Beat Estimates, Bookings Down Y/Y

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AZZ Inc. AZZ reported earnings per share of 81 cents in first-quarter fiscal 2020 (ended May 31, 2019). The reported figure surpassed the Zacks Consensus Estimate of 71 cents by 14.1%. Moreover, the bottom line improved significantly from the year-ago earnings of 60 cents by 34.4%.

Total Revenues

In the quarter under review, the company reported revenues of $289.1 million, which surpassed the Zacks Consensus Estimate of $286 million by 1.2%.

Driven by strength in its reportable segments, the top line increased 10.2% from $262.3 million registered in the prior-year quarter. Revenues from Energy and Metal Coatings segments increased a respective 13.6% and 5.9% year over year.

AZZ Inc. Price, Consensus and EPS Surprise

AZZ Inc. Price, Consensus and EPS Surprise

AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote

Backlog & Bookings

Bookings in first-quarter fiscal 2020 were down 13.3% year over year to $256.3 million. In the first half of 2019, the company booked two big Chinese orders.

At the end of first-quarter fiscal 2020, its total backlog was $300.1 million, down 1.6% from $304.9 million a year ago. Of the existing backlog, 44% will be delivered outside the United States.

Quarterly Highlights

Total operating income in the quarter increased 30.4% to $30.9 million from the year-ago figure of $23.7 million.

Selling, general and administrative expenses came in at $35.1 million, increasing marginally from $35 million in the prior-year quarter.

Interest expenses decreased 7.9% to $3.6 million from $3.8 million in the prior-year quarter.

Financial Highlights

Cash and cash equivalents as of May 31, 2019 amounted to $24 million compared with $20.9 million in the corresponding period of 2018.

Long-term debt (net) was $296.8 million as of May 31, 2019 compared with $240.7 million on Feb 28, 2019.

Net cash used in operating activities during the first quarter of fiscal 2020 was $18.6 million compared with $12.4 million in first-quarter fiscal 2019.

Guidance

The company reaffirmed its fiscal 2020 EPS guidance in the range of $2.25-$2.75. It expects its sales guidance in the range of $950-$1,030 million.

Zacks Rank

AZZ currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Manufacturing Electronics Releases

Eaton Corp. ETN is expected to release second-quarter 2019 results on Jul 30. The Zacks Consensus Estimate for the quarter is pegged at $1.52.

A. O. Smith Corp. AOS is expected to release second-quarter 2019 results on Jul 30. The Zacks Consensus Estimate for the quarter to be reported is pegged at 63 cents.

Enersys ENS is expected to release first-quarter fiscal 2020 results on Aug 14. The Zacks Consensus Estimate for the quarter is pegged at $1.32.

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AZZ Inc. (AZZ): Free Stock Analysis Report
 
A. O. Smith Corporation (AOS): Free Stock Analysis Report
 
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