AZZ Incorporated (AZZ) is set to announce its Q2 2025 earnings on October 9, 2024. With the anticipation building around this release, market participants and investors are keen to understand how the company has performed during the second quarter.
Expected Q2 Earning Report of AZZ Incorporated:
The consensus estimates for AZZ’s Q2 2025 earnings point to a revenue of $411.80 million, and earnings per share (EPS) of $1.12. These figures align with the company’s trajectory as it seeks to meet the full-year 2025 estimates of $1.61 billion in revenue and $1.76 in EPS. Over the last quarter, AZZ has seen its revenue expectations rise slightly, with the full-year 2025 revenue estimate increasing from $1.60 billion to $1.61 billion. However, earnings estimates have decreased notably, down from $3.18 to $1.76 per share. This declining trend in earnings might raise some concerns among investors.
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Looking ahead, the projections for 2026 show further revenue growth, with estimates rising from $1.69 billion to $1.70 billion. However, the EPS forecast for 2026 has seen a marginal decline, moving from $4.88 to $4.86 per share. These trends reflect a mixed outlook for AZZ, where revenue growth remains solid, but profitability is facing pressure.
Stock Target Advisor’s Analysis on AZZ Incorporated:
Stock Target Advisor provides a neutral rating for AZZ Incorporated, based on a balanced view of the company’s performance, with five positive signals and five negative signals. On the positive side, AZZ has been underpriced based on its cash flow relative to its peers and boasts superior returns on both equity and assets. The company also benefits from positive total and free cash flow over the past four quarters.
However, there are several concerns. AZZ is a smaller entity in its sector, with below-median market capitalization, and its stock appears overpriced on both earnings and book value. Additionally, the company is highly leveraged, with a debt-to-equity ratio that places it in the lower half of its sector. Finally, AZZ’s dividend growth has been notably weak, showing below-median performance in the past five years.
Conclusion:
As AZZ Incorporated prepares to release its Q2 2025 earnings, the company is facing a mixed financial outlook. Investors will be watching closely for the earnings report on Wednesday, as it may provide a clearer picture of AZZ’s trajectory for the rest of the fiscal year.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.