Noble Financial Comments on AZZ's Q3 Earnings (NYSE:AZZ)

Key Points

• Noble Financial lowered its Q3 FY2027 EPS forecast for AZZ to $1.75 from $1.78, while projecting $7.15 in FY2027 earnings and continued growth through FY2031.
• AZZ reported quarterly EPS of $2.00, beating the $1.82 consensus, while revenue rose 16.7% year over year to $486.9 million. Management set FY2027 EPS guidance at $7.00–$7.30.
• Despite strong results, AZZ shares traded down 5.2%; analyst sentiment remains a “Moderate Buy,” with an average price target of $153.20 compared with the stock’s $130.53 opening price.

AZZ Inc. (NYSE:AZZ - Free Report) - Stock analysts at Noble Financial cut their Q3 2027 earnings per share (EPS) estimates for shares of AZZ in a research report issued to clients and investors on Thursday, October 15th. Noble Financial analyst M. Reichman now forecasts that the industrial products company will post earnings of $1.75 per share for the quarter, down from their previous forecast of $1.78. The consensus estimate for AZZ's current full-year earnings is $7.09 per share. Noble Financial also issued estimates for AZZ's Q4 2027 earnings at $1.55 EPS, FY2027 earnings at $7.15 EPS, FY2028 earnings at $7.67 EPS, FY2029 earnings at $8.00 EPS, FY2030 earnings at $8.34 EPS and FY2031 earnings at $8.70 EPS.

Several other brokerages have also recently weighed in on AZZ. Weiss Ratings reiterated a "buy (b)" rating on shares of AZZ in a research note on Tuesday, October 6th. Wells Fargo & Company increased their target price on shares of AZZ from $144.00 to $145.00 and gave the stock an "equal weight" rating in a research report on Thursday. Barclays raised their target price on shares of AZZ from $140.00 to $145.00 and gave the stock an "equal weight" rating in a report on Thursday. B. Riley Financial raised their target price on shares of AZZ from $170.00 to $174.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Wall Street Zen downgraded shares of AZZ from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $153.20.

AZZ Trading Down 5.2%

AZZ stock opened at $130.53 on Friday. AZZ has a 52 week low of $94.61 and a 52 week high of $162.20. The company has a market capitalization of $3.91 billion, a PE ratio of 23.52 and a beta of 1.13. The company's 50-day simple moving average is $139.47 and its 200 day simple moving average is $142.13. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.39 and a current ratio of 1.79.

AZZ (NYSE:AZZ - Get Free Report) last issued its quarterly earnings data on Tuesday, October 13th. The industrial products company reported $2.00 EPS for the quarter, beating analysts' consensus estimates of $1.82 by $0.18. The firm had revenue of $486.89 million for the quarter, compared to analyst estimates of $467.14 million. AZZ had a return on equity of 14.85% and a net margin of 9.59%. The company's revenue for the quarter was up 16.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.55 EPS. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS.

Hedge Funds Weigh In On AZZ

Several hedge funds have recently bought and sold shares of AZZ. BlackRock Inc. bought a new stake in shares of AZZ during the 2nd quarter worth approximately $719,876,000. SEB Asset Management AB acquired a new stake in shares of AZZ during the 1st quarter worth approximately $45,297,000. Bank of New York Mellon Corp bought a new position in AZZ in the second quarter valued at approximately $35,818,000. Bank of America Corp DE bought a new position in AZZ in the second quarter valued at approximately $32,505,000. Finally, Sei Investments Co. increased its stake in AZZ by 50.5% in the first quarter. Sei Investments Co. now owns 102,027 shares of the industrial products company's stock valued at $12,768,000 after acquiring an additional 34,241 shares during the last quarter. 90.93% of the stock is owned by institutional investors.

Insider Buying and Selling at AZZ

In related news, COO Jeffrey Vellines sold 4,220 shares of the business's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $153.55, for a total value of $647,981.00. Following the completion of the transaction, the chief operating officer owned 1,834 shares of the company's stock, valued at $281,610.70. The trade was a 69.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Bryan Lee Stovall sold 2,677 shares of the company's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $150.07, for a total transaction of $401,737.39. Following the sale, the chief operating officer directly owned 35,000 shares of the company's stock, valued at $5,252,450. This represents a 7.11% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.70% of the company's stock.

AZZ Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 5th. Stockholders of record on Monday, October 19th will be issued a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, October 19th. AZZ's dividend payout ratio is 17.30%.

Trending Headlines about AZZ

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: Quarterly results beat expectations: AZZ reported record revenue of $486.9 million, up 16.7% year over year, and adjusted earnings of $2.00 per share versus the $1.86 consensus estimate. AZZ Analysts Boost Their Forecasts After Upbeat Q2 Results
• Positive Sentiment: Guidance was raised: Management increased fiscal 2027 earnings guidance to $7.00-$7.30 per share, broadly consistent with analysts’ current $7.09 consensus estimate, reinforcing expectations for continued growth. AZZ Tops Q2 EPS and Raises Guidance
• Positive Sentiment: Some analysts lifted forecasts: The earnings beat and improved outlook prompted upward revisions from certain analysts, supporting the company’s growth narrative.
• Neutral Sentiment: New coverage was balanced: Barclays initiated coverage with an Equal Weight rating and a $140 price target, while Wells Fargo raised its target modestly to $145 but maintained Equal Weight. These targets imply upside, but neither firm identified a strong near-term catalyst. Barclays Initiates Coverage of AZZ
• Negative Sentiment: Valuation and earnings-quality concerns limited the reaction: Baird lowered its price target to $150 and kept a Neutral rating. Reports also highlighted that quarterly profit declined despite the revenue and EPS beat, fueling debate over whether AZZ’s valuation—around 23.5 times earnings—fully reflects its improved outlook. AZZ’s Strong Quarter Meets a Stubborn Price

AZZ Company Profile

AZZ Inc is a provider of metal coating solutions serving customers primarily in North America. The company operates through its Metal Coatings and Precoat Metals segments, helping protect and enhance the performance, appearance, and durability of steel and other metal products used across a range of industries.

Through its Metal Coatings segment, AZZ provides hot-dip galvanizing, powder coating, anodizing, plating, and related coating services. These treatments are used for corrosion protection and finishing applications involving infrastructure, construction, industrial, transportation, and other metal products.

Precoat Metals provides coil coating services for steel and aluminum products before they are fabricated.

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