When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AZZ (AZZ) .AZZ currently has an average brokerage recommendation (ABR) of 1.50, on a scale of 1 ...

Company Performance - AZZ closed at $89.61, reflecting a -0.76% change from the previous day, underperforming the S&P 500's daily loss of 0.04% [1] - Over the past month, AZZ shares gained 10.62%, which is lower than the Industrial Products sector's gain of 15.49% and the S&P 500's gain of 13.42% [1] Upcoming Earnings - The upcoming earnings per share (EPS) for AZZ is projected at $1.56, indicating a 6.85% increase compared to the same quarter last year [2] - Revenue for the upcoming quarter is estimated at $440.52 million, reflecting a 6.61% rise from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are predicted to be $5.71 per share, with a revenue forecast of $1.69 billion, representing changes of +9.81% and +7.26% respectively from the previous year [3] - Recent modifications to analyst estimates indicate a positive outlook for AZZ's business and profitability [3] Zacks Rank and Valuation - AZZ currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate moving 2.02% lower over the past month [5] - The Forward P/E ratio for AZZ is 15.81, which is a discount compared to the industry average Forward P/E of 21.73 [6] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 60, placing it in the top 25% of over 250 industries [6] - The Zacks Industry Rank measures the strength of individual industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

AZZ (AZZ) FY Conference May 06, 2025 10:30 AM ET Speaker0 Morning, everyone. Thank you for joining us today, at the Oppenheimer conference. With us today from AZZ is David Nark, who's the chief marketing and communications and IR officer for the company. And just to give you a little background, AZZ is the leading independent galvanizing firm in The US. But with its recent acquisition, not so recent, couple about a year ago, they acquired Precoat Metals, and they're a leading player in now in the in the met ...

FORT WORTH, Texas, May 1, 2025 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions in North America, today announced that David Nark, Chief Marketing, Communications, and Investor Relations Officer will participate in the Oppenheimer 20th Annual Industrial Conference.The Oppenheimer Industrial Growth Conference, presented in a 'virtual-only' format, will be held on May 5-8, 2025. AZZ will present at 10:30am Eastern on Tuesday, May 6, 2025, ...

Core Viewpoint - AZZ Inc. has resumed its stock repurchase program, utilizing a $100 million Share Repurchase Program and a 10b5-1 plan to facilitate share buybacks while ensuring compliance with insider trading laws [1][2][3]. Group 1: Stock Repurchase Program - The company has purchased approximately $46.8 million worth of shares to date, leaving a remaining balance of $53.2 million available for future repurchases under the program [1]. - The 10b5-1 plan allows AZZ to repurchase shares during periods when it might otherwise be restricted, thus supporting its disciplined capital allocation strategy [2][3]. - A third-party broker will execute the repurchases under the 10b5-1 plan, adhering to predetermined parameters regarding timing, price, and volume [3]. Group 2: Management's Commitment - The President and CEO of AZZ Inc. emphasized the company's commitment to returning value to shareholders while maintaining flexibility and compliance with regulatory requirements [3]. - The resumption of stock purchases is seen as a strategic move to opportunistically repurchase shares while still funding growth initiatives and deploying capital to enhance shareholder value [3]. Group 3: Company Overview - AZZ Inc. is recognized as a leading independent provider of hot-dip galvanizing and coil coating solutions, serving a broad range of end-markets [5]. - The company's business segments offer sustainable metal coating solutions that improve the longevity and appearance of essential infrastructure and products [5].

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Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported sales of $1.578 billion, an increase of 2.6% from the prior year [21] - Net income before preferred stock dividend was $128.8 million, a 26.8% increase compared to the prior year [22] - Gross margins for the year improved to 24.3%, an increase of 70 basis points from the previous year [22] - In the fourth quarter, sales were $351.9 million, down 4% from the same quarter in fiscal year 2024 [23] - Adjusted net income for Q4 was $29.6 million, a 7.9% increase from the prior year [27] Business Line Data and Key Metrics Changes - Metal coatings generated sales of $665 million, while pre-coat metals generated $912 million for fiscal year 2025 [11] - Metal coatings delivered an EBITDA margin of 30.9%, while pre-coat metals had an EBITDA margin of 19.6%, both showing strength from increased volume and improved operational performance [13][14] - The galvanizing segment within metal coatings increased by 2.6% [21] Market Data and Key Metrics Changes - The construction sector, particularly bridge and highway construction, drove significant sales growth due to infrastructure investments [12] - The company experienced over 200 days of lost production in Q4 due to adverse weather conditions, impacting construction activity [12][13] - Organic top-line growth for the full year was 2.6% over the prior year [37] Company Strategy and Development Direction - The company plans to focus on debt reduction while also prioritizing capital allocation strategies, including paying dividends and investing in enterprise-wide technologies [16] - The strategy includes pursuing both organic market share growth and inorganic acquisition growth [19] - The company is evaluating M&A opportunities in the U.S. market, focusing on synergistic targets that enhance long-term shareholder value [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong start in Q1 2026, particularly in metal coatings, recovering from the previous quarter's weather impacts [48][49] - The company anticipates continued infrastructure spending related to the AIIJA program and expects public and private investment to remain resilient [37] - Management reiterated guidance for fiscal year 2026, projecting sales between $1.625 billion and $1.725 billion, with adjusted EBITDA of $360 to $400 million [41] Other Important Information - The company generated cash flows from operations of $249.9 million in fiscal year 2025, allowing for significant debt repayment and funding of a new facility [28] - The company announced a definitive agreement to sell its Electric Products Group for approximately $975 million, expected to close in the first half of calendar year 2025 [32][33] - The new aluminum coil coating facility in Washington, Missouri, has started commercial production and is expected to ramp up volumes throughout the fiscal year [29][30] Q&A Session Summary Question: What is the outlook for recovery from bad winter weather? - Management indicated that April showed recovery from Q4 shortfalls, with strong performance expected in metal coatings [48] Question: What is included in the guidance for the Avail joint venture? - Guidance reflects minimal impact from the Avail JV, with a nominal level of income expected post-sale [55] Question: How is the order book momentum affected by the macroeconomic environment? - Management reported positive short-term outlooks, with projects moving forward and customer confirmations [60] Question: What are the debt reduction goals following the JV transaction? - Management confirmed that reducing debt by approximately $300 million is realistic, with plans to utilize proceeds from the JV sale for this purpose [70][76] Question: What is the expected impact of weather on Q4 results? - Management estimated lost revenue of $8 to $12 million due to weather, most of which has been recovered in subsequent months [88] Question: Are there any materials impacted by tariffs? - Management confirmed that while some secondary supply items have been impacted, key inputs like zinc and paint remain unaffected [125][128] Question: What is the potential for acquisitions moving forward? - The acquisition pipeline looks strong, with several active deals being evaluated, particularly in galvanizing and pre-coat segments [101]

AZZ (AZZ) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.16%. A quarter ago, it was expected that this electrical equipment maker would post earnings of $1.29 per share when it actually produced earnings of $1.39, delivering a surprise of 7.75%.Over the last four quarters, the comp ...

AZZ Inc. Reports Fourth Quarter and Fiscal Year 2025 "With sales of $1.58 billion and cash flow from operations of $250 million, we were able to substantially complete our greenfield project in Washington, Missouri while significantly paying down debt in fiscal 2025. We successfully completed a secondary public offering of common stock, and fully redeemed the Company's Series A Preferred Stock. We are pleased with the financial condition of the Company and plan to further strengthen our 1 Full Year Results ...

Operations and Workforce - AZZ Precoat Metals segment operates 13 plants in the U.S., with the newest facility in Washington, Missouri, becoming operational in fiscal year 2026[20] - As of February 28, 2025, AZZ employed approximately 3,684 people worldwide, with 83% being hourly employees[31] - Approximately 53.0% of U.S. employees are diverse, as reported to the Equal Employment Opportunity Commission[34] - The executive team includes 12.5% female representation, with 16.7% of non-employee Board members being female[35] - As of February 28, 2025, 668 (or 18.1%) of the company's full-time employees were represented by unions under collective bargaining agreements[77] Safety and Development - The company emphasizes a culture of safety, aiming for zero serious injuries through investments in safety programs and initiatives[41] - AZZ offers a comprehensive benefits package, including medical, dental, and vision coverage, competitive salaries, and a 401(k) match up to 4%[37] - The company provides ongoing development opportunities, including access to over 4,500 learning modules and tuition assistance for higher education[38] Financial Performance and Risks - The acquisition of Precoat Metals in fiscal year 2023 aimed to strategically transform AZZ into a focused metal coatings solutions company[20] - Quarterly operating results may vary significantly, and past performance may not indicate future results[49] - The company requires skilled labor to maintain productivity and profitability, and labor shortages could impair profit margins[50] - Supply chain disruptions and inflation in raw material prices, particularly zinc and natural gas, could adversely affect operating margins[56] - The company’s acquisition strategy involves risks, including potential difficulties in post-acquisition integration and the need for additional financing[68] - Cybersecurity threats pose risks to operational efficiency and financial results, with potential for significant damage from incidents[61] - Changes in political and economic conditions globally could disrupt operations and impact financial performance[55] - The company’s business is cyclical and sensitive to economic downturns, which could adversely affect sales and cash flows[54] - Legal claims and regulatory changes could negatively impact profitability and liquidity[73] - The company seeks to maintain operating margins by increasing prices in response to rising costs, but this may affect future order volumes[59] Debt and Financial Obligations - The company has a liability of $24.6 million on its consolidated balance sheet related to its underfunded defined benefit pension plan as of February 28, 2025[91] - The company's debt instruments contain covenants that restrict certain actions, which could impact its operational flexibility and financial condition[85] - A significant change in a customer's creditworthiness could lead to substantial accounts receivable write-offs, adversely affecting the company's financial results[92] - The company has $900.3 million of gross debt outstanding, with approximately half of it unhedged against interest rate fluctuations[101] - A hypothetical 10% increase in interest rates would increase interest expense by $2.9 million for fiscal 2025[197] - The weighted average balance of variable interest debt outstanding was $370.6 million as of February 28, 2025[197] - Interest rate swaps are utilized to hedge approximately half of the gross debt outstanding, expiring on September 30, 2025[101] - The company does not enter into derivative instruments for speculative purposes, focusing instead on risk reduction[193] Regulatory and Environmental Risks - The company is subject to annual disclosure and audit requirements regarding conflict minerals, which may incur additional compliance costs[76] - Future quotas, duties, or tariffs could materially adversely affect the company's business, financial condition, and results of operations[75] - The company may face increased operational costs due to changes in labor or employment laws, including minimum wage rules[79] - Climate change poses risks to the company's operations from severe weather events, potentially increasing operational costs and affecting supply chains[80] - Changes in environmental laws and regulations may lead to increased compliance and operational costs, impacting future operating results[81] - Tax legislation and administrative initiatives could adversely affect the company's financial condition and results of operations[99] - The company is substantially self-insured for various liabilities, which may expose it to unexpected financial burdens[98] - The company maintains property and casualty insurance, but coverage may not fully cover all operational risks[100] Market Competition - The company operates in highly competitive markets, facing risks from competitors with lower cost structures that may impact market share[48] - The company has experienced volatility in its stock price, which could increase the risk of impairment of goodwill and intangible assets[93] - The company is exposed to foreign currency exchange rate fluctuations, particularly related to operations in Canada[97] - The company has exposure to commodity price increases, particularly in zinc and natural gas, and employs agreements to mitigate these risks[194]