AZZ (NYSE:AZZ) Releases FY 2027 Earnings Guidance

AZZ (NYSE:AZZ) updated its FY 2027 earnings guidance on Tuesday. The company provided earnings per share guidance of 7.000-7.300 for the period, compared to the consensus 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.

AZZ Price Performance

AZZ stock traded down $0.46 during mid-day trading on Tuesday, hitting $137.30. The company’s stock had a trading volume of 439,911 shares, compared to its average volume of 232,397. The stock has a market capitalization of $4.13 billion, a P/E ratio of 20.93 and a beta of 1.13. AZZ has a twelve month low of $94.61 and a twelve month high of $162.20. The stock’s fifty day moving average price is $140.49 and its two-hundred day moving average price is $141.92. The company has a quick ratio of 1.39, a current ratio of 1.92 and a debt-to-equity ratio of 0.35.

AZZ (NYSE:AZZ) last posted 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. The firm 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%. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. Research analysts forecast 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. Shareholders of record on Monday, October 19th will be paid a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Monday, October 19th. AZZ’s payout ratio is 14.63%.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. B. Riley Financial increased their target price on AZZ from $169.00 to $170.00 and gave the company a “buy” rating in a report on Monday, July 13th. Weiss Ratings reiterated a “buy (b)” rating on shares of AZZ in a report on Tuesday, October 6th. Wall Street Zen downgraded AZZ from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Finally, Wells Fargo & Company upped their price target on AZZ from $138.00 to $144.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $155.25.

Insider Buying and Selling

In related news, COO Bryan Lee Stovall sold 2,677 shares of the business’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 directly owned 35,000 shares of the company’s stock, valued at approximately $5,252,450. The trade was a 7.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Jeffrey Vellines sold 4,220 shares of the business’s 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 transaction, the chief operating officer directly owned 1,834 shares in the company, valued at $281,610.70. The trade was a 69.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.70% of the stock is owned by corporate insiders.

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.

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.