AZZ Continues to Raise Guidance

AZZ Inc. (AZZ) just reported excellent first-quarter results that included a doubling of the company's profit from last year. AZZ has been benefiting from passing along higher input costs and pursuing international markets.

AZZ Inc. manufactures electrical equipment and components for power generation and distribution in the United States. The company was founded in 1956, has a market cap of $538 million and is headquartered in Fort Worth, Texas.

First-Quarter Results

AZZ reported strong first-quarter results on June 27 that demonstrate the company's ability to grow its earnings. Revenue was up 33% from last year to $100 million. Net income more than doubled, coming in at $10.1 million compared to $4.1 million last year. This produced earnings of 82 cents per share, blowing past analyst expectations of 54 cents per share.

AZZ is making a habit of surprising and beating analyst estimates, having done so over the last four quarters by an average of 19 cents per share, or 36%.

Strong Segment

The company reported strong growth from its Electrical and Industrial Products Segment, which was up 27% to $52 million, compared to $40.9 million from last year. Operating income for the segment increased 25% to $7.9 million.

CEO David Dingus said that the company continues to pass along higher input costs to its customers and develop its presence in international markets.

Guidance Raised

After the impressive quarterly results, AZZ raised its fiscal 2009 earnings guidance. The company is now projecting revenue between $410 and $425 million, with earnings targeted between $2.95 and $3.05 per share. Analysts had been projecting current-year earnings of $2.37 per share just 60 days ago.

The Chart

Shares of AZZ have been locked into a very smooth up trend since bottoming out in early April. A new 52-week and all-time high was created just a few days ago above $48, but shares quickly retreated after submitting to the key resistance level just above $47. Take a look at the chart below.