NYSE$AZZ

Azz Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

AZZ's financial performance was affected by the COVID-19 pandemic and restructuring charges.

AZZ Inc. reported a decrease in sales and a net loss for the second quarter of fiscal year 2021, impacted by the COVID-19 pandemic and restructuring charges. Adjusted EPS was $0.49, excluding restructuring charges. The company is restructuring its portfolio to focus on core operations.

  • Adjusted EPS was $0.49, excluding one-time restructuring charges.
  • Sales decreased by 13.9% compared to the same quarter last year.
  • Metal Coatings segment maintained a solid operating margin of 23%.
  • Infrastructure Solutions segment was impacted by COVID-related travel restrictions and reduced turnaround activity.

Headline financials

Total Revenue

$203M

Previous: $236M-13.9%
EPS (adj)

$0.49

Previous: $0.54-9.3%
Capital Expenditures

$8.42M

Previous: -$16.5M+151.1%
Free Cash Flow

$34.9M

Previous: -$938K+3823.7%
Net Income

-$1.79M

Previous: $15.6M-111.5%
Operating Income

$652K

Previous: $22.2M-97.1%
Gross Profit

$46.1M

Previous: $52.7M-12.5%
Cash & Equivalents

$14M

Previous: $13.6M+3.3%
Total Assets

$1B

Previous: $1.12B-10.7%
Stock-Based Comp

$2.32M

Previous: $1.74M+33.5%

Revenue & EPS history

Azz · Revenue · Quarterly

$203M

Q2 2021-13.9%vs Q2 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Azz · $117M total across 1 segment · Q2 2021

  • Metal Coatings
    $117M-6.3%

Forward guidance

Due to the continued disruption from COVID-19, AZZ Inc. has suspended its fiscal year 2021 guidance. However, the company anticipates sequential improvement in both sales and earnings per share in the third quarter compared to the second quarter, although results are expected to fall short of last year's strong third quarter.

Tailwinds

  • Sequential improvement in sales is expected in Q3.
  • Sequential improvement in EPS is expected in Q3.
  • Strong cash flow will help manage debt and liquidity.
  • Focus on integrating Galvanizing and Powder Coating platforms.
  • Building backlog in Infrastructure Solutions segment.

Headwinds

  • Continued disruption from COVID-19.
  • Suspension of fiscal year 2021 guidance.
  • Q3 results expected to fall short of last year's strong Q3.
  • COVID-related travel restrictions affecting Infrastructure Solutions.
  • Modest fall turnaround season expected.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.7%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.7%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+19.3%

Q1 2019

Best reaction

-14.4%

Q1 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-1.3%+4.9%+1.6%
Q3 2026+6.5%+10.9%+18.4%
Q2 2026-5.3%-5.3%-5.6%
Q1 2026+3.2%+4.9%+6.0%
Q4 2025+3.1%+9.8%+15.4%
Q3 2025-2.3%-1.6%+12.3%
Q2 2025-4.2%+0.6%+4.9%
Q1 2025+8.2%+10.9%-1.4%
Q4 2024+10.9%-4.4%+12.3%
Q3 2024-0.4%+1.5%+17.8%
Q2 2024+6.7%+3.5%+1.0%
Q1 2024+2.7%+4.4%+9.1%
Q4 2023-7.2%-4.8%-10.9%
Q3 2023+6.9%+4.2%-2.3%
Q2 2023-0.4%-15.0%+1.8%
Q1 2023-2.3%-3.4%+4.8%
Q4 2022-2.2%-5.2%-9.5%
Q3 2022-5.8%-6.5%-11.4%
Q2 2022+2.4%-2.5%+2.9%
Q1 2022+6.8%+2.2%+2.6%
Q4 2021-1.5%-1.1%+0.2%
Q3 2021+1.4%-4.1%+0.5%
Q2 2021-4.7%-6.5%+0.6%
Q1 2021-11.6%-12.3%+1.8%
Q4 2020+4.6%-4.6%+5.5%
Q3 2020-2.2%-1.3%-6.3%
Q2 2020+18.4%+15.9%+17.9%
Q1 2020+2.1%+0.2%-6.1%
Q4 2019-0.7%-5.2%-3.9%
Q3 2019+7.2%+9.7%+8.9%
Q2 2019-9.1%-6.1%-1.7%
Q1 2019+19.3%+21.2%+24.0%
Q4 2018-8.4%-6.8%+0.8%
Q3 2018-8.4%-6.8%+0.8%
Q2 2018-5.4%-8.0%-5.9%
Q1 2018-14.0%-12.9%-9.8%
Q4 2017-3.5%+3.7%-7.7%
Q3 2017-11.3%-6.7%-8.3%
Q2 2017-10.4%-14.8%-19.1%
Q1 2017+0.1%+0.3%+4.6%
Q4 2016-0.0%
Q3 2016-0.7%
Q2 2016-1.7%
Q1 2016-1.1%
Q4 2015+3.5%
Q3 2015-7.7%
Q2 2015+3.5%
Q1 2015+9.6%
Q4 2014-2.3%
Q3 2014-14.1%
Q2 2014-0.4%
Q1 2014-14.4%
Q4 2013-2.4%
Q3 2013+4.2%
Q2 2013+9.3%
Q1 2012+2.2%
Q1 2013-1.5%
Q4 2012+1.6%
Q4 2010+1.6%
Q3 2011-0.2%
Q3 2012-0.2%
Q2 2011-6.0%
Q2 2012-6.0%
Q4 2011-6.0%
Q1 2011-3.6%

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