AZZ Inc (NYSE:AZZ) stock rose 0.64% (As on Oct 13, 12:23:57 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 22. At the end of the fiscal second quarter, its total backlog was $201.5 million, down 4.3% from the year-ago period. The decrease in backlog is largely attributable to the completion of large orders in China. However, sequentially backlog was up $15.4 million, or 8.3%. Bookings in second-quarter fiscal 2022 increased to $231.8 million from $208.6 million a year ago. AZZ’s book-to-sales ratio was 1.07 compared with 1.03 in the year-ago period.
AZZ in the second quarter of FY 22 has reported the adjusted earnings per share of 76 cents, beating the analysts’ estimates for the adjusted earnings per share of 65 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 6.4 percent to $216.5 million in the second quarter of FY 22, missing the analysts’ estimates for revenue of $221 million. Metal Coatings turned in another excellent quarter with sales up 10.7%, almost $130 million, and Infrastructure Solutions flat at about $87 million. Sales were somewhat impacted by labor constraints and COVID-19-related material shortages in some businesses. In Metal Coatings, which represented 60% of the sales in the second quarter, we achieved 24.4% operating margins on sales of $130 million. Metal Coatings is continuing focus on sales growth, including leveraging our spin galvanizing operations at several sites, operational execution and customer service as labor and operating expenses increased due to inflation.
The Infrastructure Solutions segment has seen more normalized business levels and entered the third quarter with some momentum in bookings activity, particularly in electrical. The WSI business is seeing good results from the expanded Poland facility, although internationally the business continues to experience some intermittent project delays due to COVID outbreaks at certain customer sites.
The electrical platform is focused on operational execution and growing its e-house and switchgear businesses. The company anticipated continuing to benefit from low interest rates.
Additionally, during the quarter, the company repurchased shares worth $15 million. Year to date, AZZ has repurchased 416,279 shares of common stock, totaling $21.2 million.
The company revised its fiscal 2022 EPS guidance to the range of $2.90-$3.20 per share from prior expectation of $2.65-$3.05. It expects sales in the range of $865 million to $925 million compared with prior expectation of $855 million to $935 million.