Upcoming AWS Coverage on General Electric Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 11, 2017 / Active Wall St. announces its post-earnings coverage on AZZ inc. (NYSE: AZZ). The Company posted its financial results for the third quarter fiscal 2017 (Q3 FY17) on January 06, 2017. The Fort Worth, Texas-based Company's net sales fell 6.2% y-o-y; while quarterly net income was down by 22.5% y-o-y. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of AZZ inc.'s competitors within the Diversified Machinery space, General Electric Co. (NYSE: GE), is expected to report its fiscal Quarter ending December 2016 earnings results on January 20, 2017 before market open. AWS will be initiating a research report on General Electric following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on AZZ; touching on GE. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=AZZ

http://www.activewallst.com/registration-3/?symbol=GE

Earnings Reviewed

During the quarter ended on November 30, 2016, AZZ reported net sales of $227.46 million compared to $242.45 million recorded at the end of Q3 FY16. Net sales numbers for the reported quarter lagged behind market expectations of $234 million.

In Q3 FY17, the Company's gross margin fell to $53.87 million, or 23.7% of net sales, from $62.45 million, or 25.8% of net sales, in the prior year's same quarter. The Company's selling, general, and administrative expenses during Q3 FY17 came in at $25.08 million versus $26.04 million in Q3 FY16. AZZ's Q3 FY17 operating income was down to $28.78 million from $36.41 million in Q3 FY16.

The electrical equipment maker reported net income of $18.25 million, or $0.70 per diluted share, in Q3 FY17 compared to $23.55 million, or $0.91 per diluted share, in Q3 FY16. Wall Street had expected the Company to report net income of $0.92 per diluted share in Q3 FY17.

Operating Metrics

The Company's bookings fell 3.0% during Q3 FY17 to $221,874 million from $228,677 million in the prior year's comparable quarter. During Q3 FY16, total shipment was $227,459 million against $242,447 million in the previous year's comparable quarter. The Company's book-to-ship ratio during Q3 FY17 was 0.98 compared to $0.94 in the Q3 FY16. The backlog order increased by 7.1% in Q3 FY17 to $347,253 million in Q3 FY17 from $324,379 million in Q3 FY16. Furthermore, approximately 19% of the backlog is expected to be delivered outside the US.

Segment Performance

During Q3 FY17, AZZ's Energy segment's revenue came in at $135.55 million compared to $136.01 million in the year ago comparable period. The segment operating income fell 18.1% during Q3 FY17 to $15.43 million, or 11.4% of segment revenue, from $18.85 million, or 13.9% of segment revenue, in Q3 FY16. The Company attributed the lower segment gross margin to an unfavorable mix shift from higher margin to lower margin business, which was partially offset by favorable SG&A expenses.

Galvanizing segment revenues declined 13.7% in Q3 FY17 to $91.91 million from $106.44 million reported in last year's corresponding quarter. The segment's reported operating income also fell to $21.35 million in Q3 FY17 from $24.26 million in Q3 FY16. However, the segment's operating income as a percentage of segment revenues improved to 23.2% in Q3 FY17 from 22.8% in the same period last year.

Cash Flow & Balance Sheet

For the nine months ended on November 30, 2016, AZZ reported net cash flow from operations of $57.28 million compared to $104.16 million in the year ago comparable period. The Company had cash and cash equivalents balance of $13.48 million as on November 30, 2016, compared to $40.19 million at the close of books on February 29, 2016. Furthermore, the Company ended the quarter with total long-term debt due after one year of $292.18 million compared to $302.43 million as on February 29, 2016.

Stock Performance

On January 10, 2017, AZZ inc.'s stock closed the trading session at $59.15, rising 3.14% from its previous closing price of $57.35. A total volume of 259.81 thousand shares have exchanged hands, which was higher than the 3-month average volume of 162.02 thousand shares. The Company's stock price advanced 6.99% in the last three months, and 19.23% in the previous twelve months. The stock is trading at a PE ratio of 21.76 and has a dividend yield of 1.15%.

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SOURCE: Active Wall Street