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AZZ Lags on Q2 Earnings and Revenues, Up Y/Y; Keeps View

Electrical equipment manufacturer AZZ IncorporatedAZZ posted earnings per share of 67 cents in the second quarter of fiscal 2016 (ended Aug 31, 2015), missing the Zacks Consensus Estimate by 4.3%.

Quarterly earnings were up 26.4% from 53 cents per share reported in the year-ago period.

AZZ Inc. - Earnings Surprise | FindTheBest

Total Revenue

AZZ reported second quarter fiscal 2016 revenues of $214.2 million, lagging the Zacks Consensus Estimate of $222 million by 3.5%. Quarterly revenues however climbed 10.8% from $193.4 million reported last year.

Higher contributions from Electrical and Industrial Products and Galvanizing Service segments helped in boosting the top line.

Fiscal Second Quarter Highlights

The rise in total revenues helped in expanding the operating margin to 8.1% against a negative margin of 1.2% in the year-ago quarter.

The company's backlog at the end of the quarter was $338.1 million, slightly up from $329.1 million a year ago.

Order booking of $233.5 million was marginally higher than $213.4 million booked in the comparable prior-year period.

Interest expenses for the fiscal second quarter declined to $4 million from $4.2 million reported in the prior-year period.

Guidance for Fiscal 2016

The company reaffirmed its earnings per share expectation for fiscal 2016 of $2.85 to $3.30.

The company also reiterated its revenue guidance range for fiscal 2016 of $900 million to $940 million, which it expects to achieve on the back of strong global opportunities.

Peer Release

Regal Beloit Corporation RBC reported adjusted earnings for the second quarter of 2015 of $1.53 per share, exceeding both the year-ago figure of $1.29 and the Zacks Consensus Estimate of $1.52.

Zacks Rank

AZZ Incorporated currently has a Zacks Rank #3 (Hold). A couple of stocks with a better rank in the electrical machinery industry are Energous Corporation WATT and Ideal Power, Inc. IPWR . Both the stocks currently carry a Zacks Rank #2 (Buy).

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REGAL BELOIT (RBC): Free Stock Analysis Report

AZZ INC (AZZ): Free Stock Analysis Report

IDEAL POWER INC (IPWR): Free Stock Analysis Report

ENERGOUS CORP (WATT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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