AZZ Inc. (NYSE: AZZ) reported a 35% jump in earnings for the first quarter of fiscal 2020 helped by solid contribution from Energy and Metals Coatings segments. The results exceeded analysts’ expectations. The galvanizing and metal coating services provider reaffirmed its fiscal 2020 earnings and sales guidance.
Net income climbed 35% to $21.28 million or $0.81 per share. Net sales increased by 10% to $289.12 million as its Energy segment, given a normal Spring season for turnarounds, made a solid contribution to the top line growth. The Metals Coatings segment continues to strengthen with increased demand and improved operational efficiencies. Energy segment revenue grew by 14% while Metals Coatings segment revenue rose by 6%.
Consolidated bookings declined by 13% year-over-year to $256.3 million. Backlog at the end of the first quarter decreased 1.6% to $300.1 million, with about 44% of the current backlog is expected to be delivered outside the US, compared to 43% in the previous year quarter.
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As part of its ongoing efforts, AZZ continues to build on the positive momentum in the Energy segment, with a strong backlog of more than $300 million, setting the stage for solid performance into the back half of the year, while its Metals Coatings business continues to gain traction from its key initiatives to drive growth both organically and through acquisitions.
Looking ahead, the company reaffirmed its fiscal 2020 earnings guidance in the range of $2.25 to $2.75 per share and annual sales outlook in the range of $0.95 billion to $1.03 billion. The company remained somewhat cautious due to the uncertainty related to tariffs and the Chinese trade situation, as well as the tighter market for labor in many of its US locations.
Shares of AZZ ended Friday’s regular session up 1.86% at $46.10 on the NYSE. The stock has fallen over 12% in the past year while it has risen over 7% in the past three months.
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