AZZ (NYSE:AZZ) Announces FY 2027 Earnings Guidance

AZZ (NYSE:AZZ) issued an update on its FY 2027 earnings guidance on Tuesday morning. 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 traded down $0.46 during midday trading on Tuesday, hitting $137.30. The company had a trading volume of 439,911 shares, compared to its average volume of 232,397. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.39 and a current ratio of 1.92. The company has a market capitalization of $4.13 billion, a PE 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 firm’s 50-day simple moving average is $140.49 and its 200-day simple moving average is $141.92.

AZZ (NYSE:AZZ) last announced its earnings results on Tuesday, October 13th. The industrial products company reported $2.00 earnings per share for the quarter, topping analysts’ consensus estimates of $1.86 by $0.14. AZZ had a net margin of 11.83% and a return on equity of 14.18%. The company had revenue of $486.89 million during the quarter, compared to the consensus estimate of $463.44 million. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. Equities research analysts predict that AZZ will post 7.06 EPS for the current fiscal year.

AZZ Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 5th. Investors of record on Monday, October 19th will be issued a $0.24 dividend. The ex-dividend date of this dividend 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 currently 14.63%.

Wall Street Analysts Forecast Growth

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

Insider Activity

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

Key Stories 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.