AZZ Beats Up on Analysts Yet Again

AZZ (NYSE: AZZ  ) reported earnings on June 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 31 (Q1), AZZ beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
AZZ tallied revenue of $127.1 million. The six analysts polled by S&P Capital IQ expected revenue of $122.8 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $114.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.26. The six earnings estimates compiled by S&P Capital IQ predicted $0.81 per share. GAAP EPS of $1.26 for Q1 were 68% higher than the prior-year quarter's $0.75 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.8%, 260 basis points better than the prior-year quarter. Operating margin was 17.7%, 190 basis points better than the prior-year quarter. Net margin was 12.6%, 430 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $145.1 million. On the bottom line, the average EPS estimate is $0.97.

Next year's average estimate for revenue is $555.2 million. The average EPS estimate is $3.68.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 767 members out of 785 rating the stock outperform, and 18 members rating it underperform. Among 184 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 182 give AZZ a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AZZ is outperform, with an average price target of $66.50.

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