AZZ (NYSE:AZZ) Issues FY 2027 Earnings Guidance

AZZ (NYSE:AZZ) issued an update on 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 earnings per share 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.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on AZZ. Barclays assumed coverage on AZZ in a research report on Wednesday. They issued an “equal weight” rating and a $140.00 target price on the stock. Wells Fargo & Company raised their price target on shares of AZZ from $138.00 to $144.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of AZZ in a report on Tuesday, October 6th. B. Riley Financial lifted their price target on shares of AZZ from $169.00 to $170.00 and gave the company a “buy” rating in a report on Monday, July 13th. Finally, Wall Street Zen downgraded shares of AZZ from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $152.20.

AZZ Trading Up 0.5%

AZZ opened at $137.39 on Thursday. AZZ has a twelve month low of $94.61 and a twelve month high of $162.20. The company has a fifty day moving average of $139.88 and a 200-day moving average of $142.08. The stock has a market cap of $4.13 billion, a PE ratio of 24.76 and a beta of 1.13. 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 issued its quarterly earnings results on Tuesday, October 13th. The industrial products company reported $2.00 EPS for the quarter, beating analysts’ consensus estimates of $1.86 by $0.14. AZZ had a net margin of 9.59% and a return on equity of 15.05%. The business had revenue of $486.89 million for the quarter, compared to analysts’ expectations of $463.44 million. During the same quarter in the prior year, the firm posted $1.55 earnings per share. The business’s quarterly revenue was up 16.7% compared to the same quarter last year. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. On average, sell-side analysts predict that AZZ will post 7.06 EPS for the current year.

AZZ Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 5th. Shareholders of record on Monday, October 19th will be issued a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, October 19th. AZZ’s payout ratio is presently 14.63%.

Insider Activity at AZZ

In related news, COO Bryan Lee Stovall sold 2,677 shares of the stock in a transaction 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 $5,252,450. This represents a 7.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Jeffrey Vellines sold 4,220 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $153.55, for a total transaction of $647,981.00. Following the completion of the sale, the chief operating officer owned 1,834 shares of the company’s stock, valued at $281,610.70. The trade was a 69.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.70% of the stock is currently owned by insiders.

Trending Headlines about AZZ

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: Quarterly results exceeded estimates. AZZ reported fiscal Q2 adjusted EPS of $2.00, above consensus estimates ranging from $1.82 to $1.87, while revenue rose 16.7% year over year to $486.9 million, exceeding estimates of roughly $463 million-$468 million. AZZ fiscal 2027 second-quarter results
• Positive Sentiment: Both operating segments delivered growth. Metal Coatings sales increased 22.9% and Precoat Metals sales rose 11.5%. Adjusted EBITDA grew 22.8% to $110.9 million, with margins improving, while operating cash flow jumped 76.1% to $102.8 million. AZZ also completed its Seattle Galvanizing acquisition and repurchased $20 million of stock. AZZ tops Q2 EPS and raises guidance
• Positive Sentiment: Fiscal 2027 guidance was raised. Management now expects full-year EPS of $7.00-$7.30 and revenue of $1.8 billion-$1.9 billion. The EPS range is near the consensus estimate, but the update reinforces expectations for continued earnings growth. AZZ earnings report
• Neutral Sentiment: Barclays initiated coverage with an Equal Weight rating. The neutral rating may limit upside enthusiasm despite the earnings beat, suggesting analysts see the current valuation as broadly reflecting AZZ’s operating prospects. Barclays initiates AZZ coverage
• Negative Sentiment: Reported GAAP profit declined because of an unusually favorable prior-year comparison. GAAP net income fell 34.6% and diluted EPS declined to $1.94, reflecting a prior-year gain tied to the AVAIL joint venture. While adjusted earnings increased 29%, the headline GAAP decline and already-elevated valuation help explain the stock’s relatively subdued reaction. AZZ second-quarter profit report

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.