AZZ Incorporated Q1 Profit Tops Estimates; Raises FY16 Guidance - Quick Facts

(RTTNews) - AZZ incorporated (AZZ), a global provider of galvanizing services, welding solutions, specialty electrical equipment and highly engineered services, reported first-quarter net income of $19.9 million, or $0.77 per share, compared to $14.9 million, or $0.58 per share, prior year.

On average, five analysts polled by Thomson Reuters expected the company to report profit per share of $0.70 for the quarter. Analysts' estimates typically exclude special items. The company said its first quarter earnings were positively impacted by an improved gross margin of 25.9% compared to 25.6% in the first quarter of prior year, despite the challenging comparison year over year from insurance proceeds related to business interruption settlements. Earnings were also positively impacted by a reduction in SG&A as a percentage of sales to 11.5% compared to 12.7% in the prior fiscal year.

Revenues were $228.9 million compared to $216.1 million, last year, an increase of 5.9%. Analysts expected revenue of $228.59 million for the quarter.

The company adjusted its guidance upward for fiscal 2016 EPS in the range of $2.85 to $3.30 and revenues in the range of $900 million to $940 million, compared to the previously issued guidance of earnings of $2.75 to $3.25 per share and revenues in the range of $875 million to $925 million. Analysts expect the company to report fiscal 2016 earnings per share of $2.93 on revenue of $910.90 million.

AZZ incorporated said the guidance update is a direct result of its acquisition of U.S. Galvanizing and the company's expectation that it will provide accretion of approximately $0.10 in EPS for fiscal year 2016.

AZZ also announced that its Board has authorized a quarterly cash dividend in the amount of $0.15 per share on the company's outstanding shares of common stock.