AZZ - AZZ stock surges 9% after robust results forecast hike

Shares of AZZ ( NYSE: AZZ ) rose nearly 9% on Tuesday after the company reported better-than-expected third quarter results and raised its full-year earnings per share forecast.

The company on Monday after the bell posted Q3 non-GAAP EPS of $0.88, which was ahead of consensus by 9 cents, and revenue of $373.3 million, up 61.1% from a year ago, beat Wall Street expectations by $13.5 million.

AZZ upped its fiscal 2023 adjusted EPS by 25 cents to $4.05 – $4.25, from $3.80 – $4.00 estimated previously, while reaffirming its annual sales guidance range of $1.27 billion to $1.32 billion.

The Seeking Alpha consensus for 2023 adjusted EPS is $3.89 and revenue is $1.33 billion.

Other Q3 metrics: Metal Coatings sales $158.3M (+17.2% Y/Y), Precoat Metals sales $215M (+14.8% Y/Y), adj EBITDA $71.2M vs $39.8M last year, SGA expenses $27.7M vs $21.3M, net income from cont ops  $18.4M vs $13.1M.

The company said it has generated cash flow of $68.6 million year-to-date, which has reduced its net leverage by 0.9x, and has reduced its debt by $230.3 million thus far.

AZZ stock was down 24.3% in 2022.

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