Electrical products maker AZZ Inc. (AZZ), Thursday reported an increase in second-quarter profit, driven mainly by a 34 percent increase in revenues. Both earnings and revenues for the quarter easily trumped Street expectations.
The company also lifted its full-year 2013 financial outlook. AZZ shares rose 10 percent in after-hours trade, following the announcement.
AZZ, which operates in two segments, said revenues from electrical and industrial products division surged 50 percent, while revenues from galvanizing service segment rose 24 percent.
Chief Executive David Dingus said, "The second quarter was another quarter of effective identification and execution of our opportunities in a market environment of continued economic and regulatory uncertainty. We are extremely pleased with the year over year improvement of both segments. We continue our effort to identify product and market expansion opportunities to further enhance our strategic position."
AZZ revenues for the quarter grew to $153.4 million from $114.7 million last year. Analysts on a consensus estimated revenues of $146.12 million for the quarter.
Fort Worth, Texas-based AZZ's second-quarter net income improved to $15.9 million or $0.62 per share from $9.6 million or $0.38 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.
AZZ has agreed to acquire Acton, Ontario-based Galvcast Manufacturing Inc., which is expected to close on October 1. The company indicated the acquisition as part of its strategy to continue the geographic expansion of its served markets that should provide a basis for continued growth of the galvanizing services segment. The company anticipates the acquisition to be accretive in the first year of operation.
Moving forward, the company lifted its guidance for the full year 2013. AZZ now expects earnings of $2.25 and $2.40 per share on revenues of $575 million to $600 million. Analysts currently expect earnings of $2.07 per share on revenues of $566.05 million for the year.
Previously, AZZ had projected earnings of $2.05 to $2.15 per share on revenues of $550 million to $575 million.
The company also declared a $0.14 per share dividend, to be paid on October 26 to shareholders as of October 12.
AZZ closed Thursday's trading at $34.76, up 0.03%. The stock further gained $3.24 or 9.32% in after hours trade.
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