Electrical products maker AZZ Inc. (AZZ: Quote) Wednesday reported a higher third-quarter profit, as net sales grew 29 percent, benefited by favorable year-over-year growth in both of its segments. The company lifted its earnings per share outlook for the fiscal year, while cut the upper end of its revenue view. The guidance reflects two-for-one-stock split effective July 30, 2012.
David Dingus, president and chief executive officer of the company stated, "The third quarter and first nine months of fiscal 2013 reflects favorable year over year growth in both segments and effective identification and execution of our opportunities in a market environment of continued economic and regulatory uncertainty."
Quarterly revenues from Electrical and Industrial Products segment increased 38 percent and Galvanizing Service segment revenues were up 23 percent from last year.
In the third quarter, the company's net income increased to $15.36 million or $0.60 per share from $10.02 million or $0.39 per share in the previous year.
On average, five analysts polled by Thomson Reuters expected the company to earn $0.57 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 29 percent to $149.68 million, but came below analysts' estimate of $152.92 million.
For fiscal 2013, the company now expects earnings to be in the range of $2.35 to $2.45 per share, up from the earlier outlook of $2.25 to $2.40 per share. Revenues are now anticipated to be between $575 million and $585 million, compared to the prior guidance range of $575 million to $600 million.
Analysts are looking for earnings of $2.25 per share, on revenue of $586.83 million for the fiscal year.
The company also announced acquisition of G3 Galvanizing, a galvanizing operation in Halifax, Nova Scotia, on January 2. The acquisition is anticipated to be accretive in the first year of operation.
AZZ closed Tuesday's regular trading at $39.81 on the NYSE.
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by RTT Staff Writer
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