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AZZ Inc. (NYSE:AZZ) fell 6.5% to $36.49 a share in pre-market trading Tuesday after Report earnings and sales missed estimates.
Metallic coatings and specialty electrical equipment supplier says non-GAAP Q2 EPS of $1.24, missing estimates equal to 0.14 dollars. Revenue of $406.7 million missed the $64.2 million estimate.
AZZ’s 63% growth in revenue was driven in part by its acquisition of a pre-coated metal unit from Sequa this year for about $1.28 billion. Due to that acquisition and divestment from the infrastructure solutions business, AZZ did not issue guidance for a full year, according to an announcement.
“We are very pleased with our first quarter as a business focused on metallic coatings, in a traditionally strong season for AZZ,” said Tom Ferguson, president and chief executive officer of AZZ. both segments. , our overall outlook remains positive, although we are seeing signs of an economic slowdown in some areas.”
Shares of AZZ are down 30% this year, compared with a 26% drop in the Russell 3000 Index.
Alpha Search columnist Anthony H. Steinmetz has a Strong Buy rating on AZZ (AZZ) because of the firm’s valuation and business prospects. The Value Investor contributor rates AZZ (AZZ) as a Buy because of the company’s efforts to debt reduction.
