NYSE$AZZ

Azz Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

AZZ's financial performance improved, driven by strong sales growth and increased incoming orders.

AZZ Inc. reported a strong fourth quarter with a 14.8% increase in sales, reaching $224.7 million. Net income rose to $21.6 million, or $0.87 per share. Incoming orders surged, leading to a significantly increased book-to-sales ratio and backlog.

  • Sales increased by 14.8% to $224.7 million compared to the prior year.
  • Net income was $21.6 million, or $0.87 per share, up from the prior year.
  • Incoming orders increased significantly to $311.6 million, resulting in a book-to-sales ratio of 1.39.
  • Backlog at the end of the quarter was $304.5 million, a 63.6% increase compared to the same quarter in the prior year.

Headline financials

Total Revenue

$225M

Previous: $196M+14.8%
EPS (adj)

$0.86

Previous: $0.62+38.7%
Capital Expenditures

$9.27M

Previous: $9.19M+0.9%
Free Cash Flow

$27.1M

Previous: $23.4M+15.4%
Net Income

$21.6M

Previous: $16.2M+33.7%
Operating Income

$26M

Previous: $18.8M+38.5%
Gross Profit

$55.2M

Previous: $45.8M+20.6%
Cash & Equivalents

$15.1M

Previous: $14.8M+1.7%
Total Assets

$1.13B

Previous: $999M+13.4%
Stock-Based Comp

$2.91M

Previous: $1.56M+86.7%

Revenue & EPS history

Azz · Revenue · Quarterly

$225M

Q4 2022+14.8%vs Q4 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Azz · $128M total across 1 segment · Q4 2022

  • Metal Coatings
    $128M+20.9%

Forward guidance

Due to the recent announcement related to the acquisition of Precoat Metals, AZZ will not issue fiscal year 2023 guidance at this time. However, the company anticipates Metal Coatings will exceed $150 million in sales and exceed 30% EBITDA for the first quarter of fiscal year 2023. Infrastructure Solutions for the first quarter of fiscal 2023 will exceed their results in the first quarter of fiscal 2022.

Tailwinds

  • Metal Coatings segment is expected to exceed $150 million in sales for the first quarter of fiscal year 2023.
  • Metal Coatings segment is expected to exceed 30% EBITDA for the first quarter of fiscal year 2023.
  • Infrastructure Solutions segment is anticipated to exceed their first quarter of fiscal year 2022 results in the first quarter of fiscal year 2023.
  • Focus on growing the Metal Coatings segment.
  • Completing the acquisition of Precoat Metals.

Headwinds

  • No specific fiscal year 2023 guidance is being issued at this time due to the pending acquisition of Precoat Metals.
  • Guidance excludes the impact of the pending Precoat acquisition.
  • Guidance reflects best estimates given current market conditions and existing execution on current backlog.
  • Guidance does not include the impact of acquisitions or divestitures.
  • Guidance does not include related expenditures or any federal regulatory changes that may emerge.

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 Q4 2022

Historical avgQ4 2022

-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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