AZZ Inc. (AZZ) Shares Down 11.2% on Disappointing Earnings
AZZ Inc. (NYSE:AZZ) shares fell 11.2% during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $56.29 and last traded at $57.80, with a volume of 772,926 shares traded. The stock had previously closed at $65.11.
The company reported $0.55 EPS for the quarter, missing the consensus estimate of $0.72 by $0.17. AZZ had a return on equity of 16.95% and a net margin of 8.50%. The business earned $195 million during the quarter, compared to the consensus estimate of $225.43 million. During the same quarter in the previous year, the business posted $0.67 earnings per share. AZZ’s quarterly revenue was down 9.0% compared to the same quarter last year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 1st. Investors of record on Tuesday, October 18th will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.17%. This is an increase from AZZ’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Friday, October 14th. AZZ’s dividend payout ratio (DPR) is presently 19.93%.
A number of equities research analysts have issued reports on the company. Zacks Investment Research downgraded AZZ from a “buy” rating to a “hold” rating in a research note on Friday, July 8th. DA Davidson restated a “hold” rating and set a $55.00 price target on shares of AZZ in a research note on Wednesday, July 6th. Five analysts have rated the stock with a hold rating, AZZ has an average rating of “Hold” and a consensus price target of $60.00.
In related news, Director Wallace P. Eisman acquired 1,000 shares of the business’s stock in a transaction that occurred on Friday, July 15th. The stock was bought at an average cost of $62.27 per share, for a total transaction of $62,270.00. Following the purchase, the director now owns 4,641 shares in the company, valued at approximately $288,995.07. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Timothy E. Pendley sold 1,200 shares of the business’s stock in a transaction that occurred on Tuesday, July 19th. The shares were sold at an average price of $62.02, for a total value of $74,424.00. Following the transaction, the senior vice president now owns 30,980 shares of the company’s stock, valued at $1,921,379.60. The disclosure for this sale can be found here. Company insiders own 0.01% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Advisors Asset Management Inc. increased its position in shares of AZZ by 12.7% in the second quarter. Advisors Asset Management Inc. now owns 1,737 shares of the company’s stock worth $104,000 after buying an additional 196 shares during the period. BlackRock Inc. increased its position in shares of AZZ by 131.3% in the first quarter. BlackRock Inc. now owns 1,876 shares of the company’s stock worth $106,000 after buying an additional 1,065 shares during the period. Tower Research Capital LLC TRC bought a new position in shares of AZZ during the second quarter worth about $181,000. PineBridge Investments L.P. increased its position in shares of AZZ by 4.1% in the second quarter. PineBridge Investments L.P. now owns 3,288 shares of the company’s stock worth $197,000 after buying an additional 131 shares during the period. Finally, Cubist Systematic Strategies LLC increased its position in shares of AZZ by 35.0% in the second quarter. Cubist Systematic Strategies LLC now owns 3,434 shares of the company’s stock worth $206,000 after buying an additional 890 shares during the period. Institutional investors own 84.08% of the company’s stock.
The stock’s 50-day moving average price is $64.96 and its 200 day moving average price is $60.35. The company has a market capitalization of $1.51 billion, a P/E ratio of 19.44 and a beta of 1.34.
AZZ Inc is a provider of galvanizing services, welding solutions, specialty electrical equipment and engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company operates through two segments: Energy segment and Galvanizing segment. Its Energy segment provides products and services designed to support industrial, nuclear and electrical applications.
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