Earnings Preview: AZZ Incorporated

| About: AZZ incorporated (AZZ)

AZZ Incorporated (NYSE:AZZ) manufactures electrical equipment and components for power generation, transmission and distribution, and industrial markets primarily in the United States and Canada. It operates in two segments, Electrical and Industrial Products, and Galvanizing Services.

It is scheduled to report its Q1 2013 results on June 29, 2012, before the market opens.

Technical Overview


Key Metrics

  • Market Cap: 673.31M
  • 52-week trading range: 37.19 - 54.64
  • Trailing P/E: 16.56
  • Forward P/E: 11.64
  • Price/Sales: 1.43
  • Price/Book: 2.33
  • PEG Ratio: 1.01
  • Total Debt: 225.00M
  • Annual dividend yield: 1.90%
  • Return on Equity: 14.99%
  • Return on Assets: 8.12%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.82 EPS, in-line with analyst estimates.

The consensus EPS is $0.81 based on 5 analysts' estimates, up from $0.75 a year ago. Revenue estimates are $124.36M, up from $114.33M a year ago. The median target price by analysts for the stock is $68.00.

Average recommendation: Overweight

Source: Marketwatch

Latest Developments

  • On April 30, 2012, AZZ incorporated announced that it has entered into an agreement to acquire substantially all of the assets of Nuclear Logistics, Inc. (NLI). The acquisition, including the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, is anticipated to close on June 1, 2012.
  • On April 5, 2012, AZZ incorporated announced that based upon the evaluation of information currently available to management, the Company's previously issued guidance for fiscal 2013, that revenues would be in the range of $475-$510 million and that fully diluted earnings per share (EPS) would be in the range of $3.25-$3.55, remains unchanged.
  • On January 20, 2012, AZZ incorporated announced that its Board of Directors, at its regularly scheduled meeting, has declared a quarterly cash dividend of $0.25 cents per share payable on February 17, 2012 to shareholders of record on February 3, 2012.
  • On January 6, 2012, AZZ incorporated announced that it is revising fiscal 2012 guidance for revenues to be in the range of $465-$475 million and for earnings to be within the range of $3.00-$3.15 per diluted share .

Competitors

AZZ Incorporated operates in Metal Fabrication industry. The company could be compared to Dynamic Materials Corp. (NASDAQ:BOOM), Eaton Corporation (NYSE:ETN), General Electric Company (NYSE:GE), and Metals USA Holdings Corp. (NYSE:MUSA). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

AZZ Chart

AZZ data by YCharts

Competitors' Latest Development

  • On June 12, 2012, General Electric Co announced that it had secured an order for GBP3.25 million from General Dynamics UK for subsystems required for the Demonstration Phase for the Scout Specialist Vehicle family of platforms for the British Army for which General Dynamics UK is currently on contract.
  • On June 8, 2012, General Electric Co announced that it declared a $0.17 per share dividend on the outstanding common stock of the Company payable on July 25, 2012, with a record date of June 25, 2012 and ex-dividend date of June 21, 2012.
  • On June 6, 2012, General Electric Co's GE Oil & Gas announced that it will supply advanced turbocompression technology for the PETRONAS LNG Train 9 project, which will add 3.6 million tons per annum (mtpa) to the existing 25.7 mtpa production capacity of the PETRONAS LNG Complex in Bintulu, Sarawak, Malaysia.
  • On June 5, 2012, General Electric Co's GE Healthcare announced the acquisition of XPRO, a Brazilian Interventional X-ray equipment manufacturer company with over 15 years of experience and with more than 120 systems installed at private customer sites.
  • On June 2, 2012, General Electric Co's GE Healthcare announced results from the Tamoxifen and Exemestane Adjuvant Multinational (NASDAQ:TEAM) Trial at the 2012 Annual Meeting of the American Society of Clinical Oncology.
  • On May 21, 2012, Eaton Corporation and Cooper Industries plc announced they have entered into a definitive agreement under which Eaton will acquire Cooper in a transaction.
  • On May 1, 2012, Dynamic Materials Corporation announced that for the second quarter of 2012, it expects sales to be down 10% to 14% versus second quarter of 2011. For fiscal 2012, it is reaffirming that sales are expected to increase 7% to 10% from 2011.
  • On April 25, 2012, Eaton Corporation announced that the Board of Directors declared a quarterly dividend of $0.38 per common share payable on May 25, 2012, to shareholders of record at the close of business on May 7, 2012.
  • On April 23, 2012, Eaton Corporation announced that for second quarter of 2012, it expects operating earnings per share which exclude charges to integrate recent acquisitions, to be between $1.05 and $1.15, and net income per share to be between $1.04 and $1.14.
  • On April 20, 2012, Eaton Corporation announced it has agreed to acquire substantially all of the shares of Jeil Hydraulics Co., Ltd. Headquartered in South Korea, Jeil Hydraulics is a manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market.
  • On April 19, 2012, Metals USA Holdings Corp. announced that it is anticipating a more profitable for the second quarter of 2012 and expects earnings per share to be higher than $0.44.
  • On March 12, 2012, Metals USA Holdings Corp. announced that it has acquired Gregor Technologies, LLC (Gregor). Metals USA expects that the transaction will be immediately accretive to earnings.
  • On February 24, 2012, Eaton Corporation announced that as a result of the planned acquisition, the Company is increasing its guidance for fiscal 2012 earnings per share by $0.03 to between $4.13 and $4.53.
  • On February 23, 2012, Dynamic Materials Corporation announced that it is forecasting that fiscal 2012 consolidated sales will increase by 7% to 10% from fiscal 2011 sales. For the first quarter of 2012, the Company is anticipating sales to be flat to up 3% compared to the $45.6 million it reported in the first quarter of 2011.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Industrial Electrical Equipment, Earnings
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