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The Gory Details on AZZ's Double Miss

Wednesday - 4/10/2013, 2:00am  ET

AZZ reported earnings on April 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 28 (Q4), AZZ missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share dropped. GAAP earnings per share grew significantly.

Gross margins expanded, operating margins dropped, net margins were steady.

Revenue details
AZZ logged revenue of $140.4 million. The five analysts polled by S&P Capital IQ predicted sales of $142.9 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $123.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.45. The five earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.45 for Q4 were 2.2% lower than the prior-year quarter's $0.46 per share. GAAP EPS of $0.52 for Q4 were 16% higher than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.1%, 90 basis points better than the prior-year quarter. Operating margin was 14.8%, 140 basis points worse than the prior-year quarter. Net margin was 9.4%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $201.6 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $873.3 million. The average EPS estimate is $2.96.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 794 members out of 815 rating the stock outperform, and 21 members rating it underperform. Among 201 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 197 give AZZ a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AZZ is buy, with an average price target of $51.00.

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This article was originally published as The Gory Details on AZZ's Double Misson Fool.com

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