Azz Q2 2021 Earnings Report
Key Takeaways
AZZ Inc. reported a decrease in sales and a net loss for the second quarter of fiscal year 2021, impacted by the COVID-19 pandemic and restructuring charges. Adjusted EPS was $0.49, excluding restructuring charges. The company is restructuring its portfolio to focus on core operations.
Adjusted EPS was $0.49, excluding one-time restructuring charges.
Sales decreased by 13.9% compared to the same quarter last year.
Metal Coatings segment maintained a solid operating margin of 23%.
Infrastructure Solutions segment was impacted by COVID-related travel restrictions and reduced turnaround activity.
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Forward Guidance
Due to the continued disruption from COVID-19, AZZ Inc. has suspended its fiscal year 2021 guidance. However, the company anticipates sequential improvement in both sales and earnings per share in the third quarter compared to the second quarter, although results are expected to fall short of last year's strong third quarter.
Positive Outlook
- Sequential improvement in sales is expected in Q3.
- Sequential improvement in EPS is expected in Q3.
- Strong cash flow will help manage debt and liquidity.
- Focus on integrating Galvanizing and Powder Coating platforms.
- Building backlog in Infrastructure Solutions segment.
Challenges Ahead
- Continued disruption from COVID-19.
- Suspension of fiscal year 2021 guidance.
- Q3 results expected to fall short of last year's strong Q3.
- COVID-related travel restrictions affecting Infrastructure Solutions.
- Modest fall turnaround season expected.