Stock Market Watch

AZZ Outlook Downbeat, Miss Q2 Expectations

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AZZ Inc. (NYSE: AZZ) reported on Friday that fiscal second quarter net income rose as sales increased 24%; nonetheless, shares ended sharply lower in regular trading hours as both core earnings and revenue fell short of analysts’ expectation. The guidance for the current quarter was also disappointing. In addition, the company also cut its fiscal 2014 outlook. The electrical equipment maker cited delay in new construction for a weak outlook.

However, the Company’s President and CEO, David Dingus said to analysts in a conference call, “Despite the continued sluggish economic conditions in our served markets, combined with significant project delays, we anticipate that the net earnings for fiscal 2014 will reflect an improvement over fiscal 2013.”

For the latest period, AZZ Inc. posted a net income of $16.36 million or 64 cents a share compared to a profit of $15.87 million or 62 cents a share, in the year-earlier quarter.

Stripping out onetime items, the adjusted earnings stood at 57 cents share down from 65 cents a share, in the same quarter of last year.

Analysts polled by Thomson Reuters had forecasted earnings of 66 cents a share.

Sales increased 24% to $189.78 million from $153.39 million but missed analysts’ expectation of $202.83 million.

For the current quarter, AZZ anticipates earnings to be in the range of 65 cents to 75 cents a share on revenue of $210 million to $230 million. Analysts’ forecast was for earnings of 95 cents on revenue $248.03 million.

For the fiscal 2014, the Company expects earnings of $2.45 to $2.65 a share down from earlier projection of $2.65 to $2.95 a share. Revenue is now expected to be in the range of $780 million to $810 million compared to earlier projection of $825 million to $900 million.

Analysts’ forecast was for earnings of $2.83 a share on revenue of $844.56 million.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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