AZZ (NYSE:AZZ) Releases FY 2027 Earnings Guidance

Key Points

• AZZ issued FY2027 guidance of $6.50–$7.00 EPS (consensus $6.79) and $1.7–$1.8 billion revenue (consensus $1.8B); the stock traded down about 1.3% on the update.
• The company beat the latest quarter with $1.34 EPS versus $1.22 expected and $385.1M in revenue, and announced a $0.20 quarterly dividend plus a $100M share buyback (≈2.7% of shares), though several insiders have recently sold stock.

AZZ (NYSE:AZZ - Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 6.500-7.000 for the period, compared to the consensus estimate of 6.790. The company issued revenue guidance of $1.7 billion-$1.8 billion, compared to the consensus revenue estimate of $1.8 billion.

AZZ Trading Down 1.3%

Shares of AZZ traded down $1.75 during mid-day trading on Wednesday, hitting $134.73. The company had a trading volume of 361,497 shares, compared to its average volume of 179,199. The business's 50-day simple moving average is $130.48 and its 200-day simple moving average is $116.86. The company has a quick ratio of 1.21, a current ratio of 1.66 and a debt-to-equity ratio of 0.41. AZZ has a 1-year low of $80.79 and a 1-year high of $141.18. The stock has a market cap of $4.02 billion, a PE ratio of 12.66 and a beta of 1.15.

AZZ (NYSE:AZZ - Get Free Report) last released its earnings results on Wednesday, April 22nd. The industrial products company reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.12. AZZ had a net margin of 19.89% and a return on equity of 14.45%. The business had revenue of $385.10 million for the quarter, compared to analysts' expectations of $382.24 million. AZZ has set its FY 2027 guidance at 6.500-7.000 EPS. Sell-side analysts forecast that AZZ will post 6.04 earnings per share for the current year.

AZZ Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Thursday, April 23rd will be given a $0.20 dividend. The ex-dividend date of this dividend is Thursday, April 23rd. This represents a $0.80 annualized dividend and a dividend yield of 0.6%. AZZ's dividend payout ratio (DPR) is currently 7.52%.

AZZ declared that its Board of Directors has authorized a share repurchase plan on Friday, January 30th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the industrial products company to purchase up to 2.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Noble Financial reaffirmed an "outperform" rating on shares of AZZ in a research report on Tuesday, February 17th. Evercore restated an "outperform" rating and issued a $137.00 price target on shares of AZZ in a research note on Wednesday, March 4th. Robert W. Baird set a $125.00 price target on shares of AZZ in a research note on Friday, January 9th. Weiss Ratings restated a "buy (b)" rating on shares of AZZ in a research note on Monday, December 29th. Finally, Wells Fargo & Company lowered shares of AZZ from an "overweight" rating to an "equal weight" rating and lifted their price target for the stock from $127.00 to $132.00 in a research note on Monday, March 2nd. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $127.00.

Insider Activity

In other news, insider Tara D. Mackey sold 2,923 shares of the company's stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $136.00, for a total transaction of $397,528.00. Following the completion of the transaction, the insider owned 22,373 shares in the company, valued at approximately $3,042,728. This represents a 11.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Thomas E. Ferguson sold 25,000 shares of the company's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $127.29, for a total transaction of $3,182,250.00. Following the transaction, the chief executive officer owned 158,182 shares of the company's stock, valued at $20,134,986.78. This represents a 13.65% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.77% of the stock is currently owned by corporate insiders.

Institutional Trading of AZZ

A number of hedge funds have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD lifted its position in shares of AZZ by 861.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 315,485 shares of the industrial products company's stock worth $33,814,000 after purchasing an additional 282,676 shares in the last quarter. Wellington Management Group LLP lifted its position in shares of AZZ by 93.2% in the fourth quarter. Wellington Management Group LLP now owns 549,291 shares of the industrial products company's stock worth $58,873,000 after purchasing an additional 264,956 shares in the last quarter. Skandinaviska Enskilda Banken AB publ lifted its position in shares of AZZ by 131.2% in the fourth quarter. Skandinaviska Enskilda Banken AB publ now owns 299,147 shares of the industrial products company's stock worth $32,063,000 after purchasing an additional 169,772 shares in the last quarter. Invesco Ltd. lifted its position in shares of AZZ by 103.5% in the third quarter. Invesco Ltd. now owns 276,990 shares of the industrial products company's stock worth $30,228,000 after purchasing an additional 140,877 shares in the last quarter. Finally, Intrinsic Edge Capital Management LLC purchased a new stake in shares of AZZ in the fourth quarter worth approximately $11,200,000. 90.93% of the stock is owned by hedge funds and other institutional investors.

About AZZ

AZZ Inc, incorporated in 1956 and headquartered in Fort Worth, Texas, is a leading provider of galvanizing and metal finishing solutions alongside electrical equipment and services. The company supports a diverse range of industries—such as energy, infrastructure, heavy equipment and general industrial markets—by delivering corrosion protection and high-performance electrical solutions designed for demanding environments.

AZZ operates two primary business segments. The Global Coatings & Services segment offers hot-dip galvanizing, metal finishing, painting, powder coating and related value-added services to steel fabricators and original equipment manufacturers.

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