AZZ Inc. ( NYSE: AZZ ) fell 6.5% to $36.49 a share in premarket trading Tuesday after reporting earnings and revenue that missed estimates.
The provider of metal coatings and specialty electrical equipment said Q2 non-GAAP EPS reached $1.24, missing estimates by $0.14. Revenue of $406.7 million missed estimates by $64.2 million.
AZZ’s 63% growth in earnings was partly attributable to this year's acquisition of the precoat metals unit from Sequa for about $1.28 billion. Because of that acquisition and the divestment from its infrastructure solutions segment, AZZ didn’t provide full-year guidance, according to an announcement.
“We were pleased with our first full quarter as a focused metal coatings business, in what is a traditionally strong season for both segments," Tom Ferguson, president and CEO of AZZ. "As we progress through the seasonally slower back half of the year, our overall outlook remains positive, although we are seeing signs of economic slowing in some areas.”
AZZ’s stock this year has fallen 30%, compared with a 26% decline for the Russell 3000 Index.
Seeking Alpha columnist Anthony H. Steinmetz has a Strong Buy rating on AZZ ( AZZ ) because of the company’s valuation and business outlook . Contributor The Value Investor rates AZZ ( AZZ ) as a Buy because of the company’s efforts to reduce debt .
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AZZ declines after Q2 earnings, revenue miss estimates