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AZZ shares fall as Q2 revenue misses estimates narrowly

EditorRachael Rajan
Published 10/10/2024, 07:19 am
Updated 10/10/2024, 07:30 am
© Reuters.
AZZ
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NEW YORK - AZZ Inc. (NYSE:AZZ) reported mixed second quarter results and provided a mixed outlook for fiscal 2025, sending shares down 3.74% in after-hours trading on Wednesday.

The metal coatings and precoat metals company posted adjusted earnings per share of $1.37 for the second quarter, beating analyst estimates of $1.32. However, revenue of $409 million fell short of expectations for $409.5 million.

AZZ's second quarter sales increased 2.6% year-over-year, driven by 3.8% growth in its Precoat Metals segment and 1% growth in Metal Coatings. Adjusted EBITDA margin expanded to 22.5% from 22.1% last year.

For fiscal 2025, AZZ narrowed and raised its earnings guidance to $4.70-$5.10 per share, compared to the consensus estimate of $4.94. However, the company's revenue forecast of $1.525-$1.625 billion was mixed versus analyst expectations of $1.61 billion.

"Focused execution and seasonal strength contributed to second quarter sales of $409.0 million, up 2.6% over the prior year, and Adjusted EPS of $1.37," said CEO Tom Ferguson.

The company reduced its debt by $45 million in the first half of fiscal 2025 and now expects to cut debt by at least $100 million for the full year, exceeding its previous target range.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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