Is It Time to Review Stock News? AZZ Inc. (NYSE: AZZ)

AZZ Inc. (NYSE: AZZ) spotted trading -35.56% off 52-week high price. On the other end, the stock has been noted 68.05% away from the low price over the last 52-weeks. The stock changed 0.43% to recent value of $32.45. The stock transacted 173349 shares during most recent day however it has an average volume of 211.55K shares. The company has 26.21M of outstanding shares and 25.73M shares were floated in the market.

AZZ Inc. (AZZ) recently reported financial results for the first quarter of fiscal year 2021, ended May 31, 2020.

First Quarter Results

For the first quarter of fiscal year 2021, the Company stated revenues of $213.3M contrast to $289.1M for the comparable period last year, a decrease of 26.2%.  Stated operating income reduced to $14.3M, or 53.8% contrast to $31.0M in last year’s comparable three-month period. Net income for the three months reduced to $5.5M, or $0.21 per diluted share on a stated basis, contrast to $21.3M, or $0.81 per diluted share contrast to the same quarter in the previous fiscal year.  The provision for income taxes of $4.7M reflects an effective tax rate of 45.8% for the three months ended May 31, 2020 as contrast to $5.7M, or 21.1% for the previous year comparable period.  The increase is attributable to uncertain tax positions related to research and development tax credits and losses in foreign jurisdictions for which the Company does not anticipate being able to recognize the benefit. Bookings for the three-month period declined to $174.9M, contrast to $256.3M for the same quarter last year.  Backlog at the end of the quarter was $205.4M, a decrease of 31.6% as contrast to backlog at the end of the same quarter in the previous year. About 20% of the current backlog is predictable to be delivered outside the U.S., contrast to 44% in the first quarter of fiscal 2020.

Fiscal Year 2021 Guidance

Mr. Ferguson added, “Due to the continued uncertainty associated with the COVID-19 pandemic on many of our end markets, we cannot provide an update to our before suspended fiscal 2021 sales and earnings guidance range at this time. As before stated, we continue to operate as an ‘essential business’ in supporting critical infrastructure needs during these unprecedented times.  Our low debt level and ample borrowing capacity, combined with our consistent ability to generate cash, provides confidence that we will be able to successfully manage both debt and liquidity satisfactorily throughout fiscal year 2021.  We continue to be prudent with our cash by focusing capital expenditures on core growth initiatives and safety-related spending, paying a dividend, reducing debt, and repurchasing shares to minimize dilution Because of employee stock compensation plans.  We are also carefully managing our workforce to ensure a safe and healthy operating environment, while flexing our capacity to better match our demand.  Additionally, we did not experience any unusual slowdown in consumer payments as we navigated our first quarter in the midst of the pandemic. We will continue to drive operational efficiencies aggressively, and maintain active M&A activities in support of our planned growth initiatives.  However, some M&A efforts have been influenced by our inability to meet with prospective parties Because of the COVID-19 pandemic.

“We hope to be able to re-establish our financial guidance as we get to the back half of this fiscal year.  In the interim we will work to provide as much context to our outlook as possible.  The risks we are focused on managing are:  fully integrating the Galvanizing and Surface Technologies platforms to drive market share growth and operating efficiencies; building backlog in our core Electrical Businesses; ensuring our ability to deploy resources effectively during, what appears to be, a strengthening fall turnabout season; and managing our cash well to ensure we enter FY2022 in a great position.”

Its earnings per share (EPS) expected to touch remained -4.40% for this year while earning per share for the next 5-years is expected to reach at 10.00%. AZZ has a gross margin of 22.30% and an operating margin of 7.50% while its profit margin remained 4.50% for the last 12 months. According to the most recent quarter its current ratio was 1.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of -1.18% from the mean of 20 days, 8.17% from mean of 50 days SMA and performed -13.39% from mean of 200 days price. Company’s performance for the week was -14.63%, 18.86% for month and YTD performance remained -29.38%.

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