AZZ Inc. (AZZ) Stock Price Down 11.2% After Earnings Miss
Shares of AZZ Inc. (NYSE:AZZ) traded down 11.2% during trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $56.29 and last traded at $57.80, with a volume of 772,926 shares. The stock had previously closed at $65.11.
The company reported $0.38 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.72 by $0.34. AZZ had a net margin of 8.50% and a return on equity of 16.95%. The firm earned $195 million during the quarter, compared to the consensus estimate of $225.43 million. During the same quarter last year, the firm posted $0.67 earnings per share. AZZ’s revenue was down 9.0% compared to the same quarter last year.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 1st. Stockholders of record on Tuesday, October 18th will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.21%. This is an increase from AZZ’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Friday, October 14th. AZZ’s payout ratio is 19.93%.
A number of equities research analysts have recently weighed in on the company. Zacks Investment Research downgraded AZZ from a “buy” rating to a “hold” rating in a report on Friday, July 8th. DA Davidson reiterated a “hold” rating and issued a $55.00 price target on shares of AZZ in a report on Wednesday, July 6th. Five analysts have rated the stock with a hold rating, AZZ currently has an average rating of “Hold” and a consensus price target of $60.00.
In related news, SVP Timothy E. Pendley sold 1,200 shares of the company’s stock in a transaction on Tuesday, July 19th. The stock was sold at an average price of $62.02, for a total transaction of $74,424.00. Following the completion of the transaction, the senior vice president now directly owns 30,980 shares in the company, valued at approximately $1,921,379.60. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Wallace P. Eisman acquired 1,000 shares of the stock in a transaction that occurred on Friday, July 15th. The shares were bought at an average price of $62.27 per share, with a total value of $62,270.00. Following the completion of the purchase, the director now owns 4,641 shares in the company, valued at $288,995.07. The disclosure for this purchase can be found here. Corporate insiders own 0.01% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Advisors Asset Management Inc. increased its position in shares of AZZ by 12.7% in the second quarter. Advisors Asset Management Inc. now owns 1,737 shares of the company’s stock worth $104,000 after buying an additional 196 shares during the last quarter. BlackRock Inc. increased its position in shares of AZZ by 131.3% in the first quarter. BlackRock Inc. now owns 1,876 shares of the company’s stock worth $106,000 after buying an additional 1,065 shares during the last quarter. Tower Research Capital LLC TRC bought a new position in shares of AZZ during the second quarter worth approximately $181,000. PineBridge Investments L.P. increased its position in shares of AZZ by 4.1% in the second quarter. PineBridge Investments L.P. now owns 3,288 shares of the company’s stock worth $197,000 after buying an additional 131 shares during the last quarter. Finally, Cubist Systematic Strategies LLC increased its position in shares of AZZ by 35.0% in the second quarter. Cubist Systematic Strategies LLC now owns 3,434 shares of the company’s stock worth $206,000 after buying an additional 890 shares during the last quarter. Hedge funds and other institutional investors own 84.08% of the company’s stock.
The company has a market capitalization of $1.45 billion, a PE ratio of 18.67 and a beta of 1.34. The company has a 50-day moving average price of $65.17 and a 200 day moving average price of $60.36.
AZZ Inc is a provider of galvanizing services, welding solutions, specialty electrical equipment and engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company operates through two segments: Energy segment and Galvanizing segment. Its Energy segment provides products and services designed to support industrial, nuclear and electrical applications.
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