NYSE$AZZ

Azz Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported earnings per share of $0.76 and net income of $19.7 million, despite challenges from the COVID-19 pandemic.

AZZ Inc. reported third quarter fiscal year 2021 results with earnings per share of $0.76 and net income of $19.7 million. Sales for the quarter were $226.6 million, a decrease of 22.2% compared to the same period last year. The company is strategically restructuring its portfolio to focus on the metal coatings business.

  • Earnings per share of $0.76 and net income of $19.7 million, including net charges of $1.6 million related to the divestiture of Southern Mechanical Services (SMS).
  • Sales of $226.6 million, increased sequentially by 11.4% from the second quarter.
  • Metal Coatings segment sales decreased 10.5% to $115.6 million, while operating income increased 5.2% to $28.7 million.
  • Infrastructure Solutions segment sales decreased 31.5% to $111.0 million, and operating income decreased 49.9% to $8.7 million.

Headline financials

Total Revenue

$227M

Previous: $291M-22.2%
EPS (adj)

$0.80

Previous: $0.84-4.8%
Capital Expenditures

-$27.9M

Previous: -$22.5M-23.7%
Free Cash Flow

-$8.18M

Previous: -$508K-1510.6%
Net Income

$19.7M

Previous: $22M-10.6%
Operating Income

$27.9M

Previous: $33.4M-16.6%
Gross Profit

$54.7M

Previous: $67.3M-18.8%
Cash & Equivalents

$19.2M

Previous: $14.3M+34.3%
Total Assets

$1.01B

Previous: $1.17B-13.9%
Stock-Based Comp

$1.69M

Previous: $1.82M-7.0%

Revenue & EPS history

Azz · Revenue · Quarterly

$227M

Q3 2021-22.2%vs Q3 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Azz · $116M total across 1 segment · Q3 2021

  • Metal Coatings
    $116M

Forward guidance

AZZ Inc. anticipates fiscal 2021 fourth quarter financial results to exceed the fiscal 2020 fourth quarter adjusted earnings per share of $0.47 per diluted share, but expects fourth quarter results to be below the third quarter results. The company continues to suspend full fiscal year 2021 guidance due to COVID-19 disruptions.

Tailwinds

  • Strong cash flow generation will help manage debt and liquidity effectively.
  • Focus on capital expenditures on core growth initiatives and safety-related spending.
  • Reducing debt and repurchasing shares to enhance shareholder value.
  • Integrating the acquisition of Acme Galvanizing to drive market share growth and operating efficiencies.
  • Building backlog in the Infrastructure Solutions segment.

Headwinds

  • Ongoing COVID-related travel restrictions within certain geographical areas served by Infrastructure Solutions teams.
  • Expects fourth quarter results to be below the third quarter results.
  • Continued disruption from COVID-19.
  • Weak oil demand impacting refining turnaround projects.
  • Lower orders in China due to decreased sales efforts in the region.

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 Q3 2021

Historical avgQ3 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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