Growth & Income: AZZ Inc. (AZZ)

AZZ Incorporated (AZZ) recently upped its fiscal year 2011 earnings per share guidance by 35%.

Growth and Income

The company is expected to grow its EPS 16.0% over the long term, and it has a dividend yield of 2.7%.

AZZ is a Zacks #1 Rank that trades at 13.8x fiscal 2011 EPS estimates and 11.7x fiscal 2012 EPS estimates.


AZZ Incorporated manufactures electrical equipment and components for power generation, transmission and distribution, and industrial markets in the United States and Canada. It operates through two segments, Electrical and Industrial Products, and Galvanizing Services.

Fiscal First-Quarter Results

On June 25, AZZ Incorporated announced revenues of $77.5 million, down from $95.5 million in the year-ago quarter. Revenues were flat in its Galvanizing Service segment, nut down 33% in its Electrical and Industrial Products segment. The company reported EPS of $0.57, beating the Zacks Consensus Estimate by a penny.

President and CEO David Dingus said, “based upon our quotation activity and conversations with our customers, we do believe that our backlog and business levels continue to show signs of stabilizing.”


For fiscal 2011, the company now expects revenues in the range of $380 million to $395 million, up from its previous guidance of $310 million to $330 million. Moreover, it expects earnings per share of $2.65-$2.80, well above its previous outlook of $1.85-$2.20. The revised guidance includes the anticipated results of the acquisition of North American Galvanizing.


In the last week, the Zacks Consensus for fiscal 2011 rose 46 cents, or 20.3%, to $2.73, and the Zacks Consensus for fiscal 2012 increased 37 cents, or 13.0%, to $3.21.

Read the April 29 commentary on AZZ Incorporated.

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