AZZ Inc (NYSE: AZZ) stock fell over 0.2% on 12th Jan, 2021 (as of 11 am GMT-5; Source: Google finance) after the company posted mixed results for the third quarter of FY 21. AZZ reported the net income for the third quarter of $19.70 million, down from $22.04 million in the year-ago period. Incoming orders for the third quarter declined to $194.4 million from $263.7 million for the same quarter last year. Backlog at the end of the third quarter was $174.4 million, which is down 36.5 percent from the prior-year period, due to lower orders in China as the company previously stated its plan to decrease sales efforts in this region, along with the effects on the business from the pandemic.
Meanwhile, the company has recently acquired all the assets of Acme Galvanizing, Inc., which is a privately held hot-dip galvanizing and zinc electroplating company based in Milwaukee, Wisconsin. Through the acquisition, AZZ has added a well-established successful metal coatings operation with a diverse customer base, which operates in an 80,000 square foot facility located in Milwaukee, Wisconsin. Going forward, AZZ plans to operate the new facility as AZZ Galvanizing and Plating – Milwaukee, and further extends AZZ’s ability to support customers in the Midwest. The new metal coatings plant is planned to be integrated into AZZ’s existing network of hot-dip galvanizing plants, increasing its total hot-dip galvanizing network to 40 sites in North America.
AZZ in the third quarter of FY 21 has reported the adjusted earnings per share of 80 cents, beating the analysts’ estimates for the adjusted earnings per share of 66 cents, according to analysts polled by Thomson Reuters. The company had reported 22.2 percent decline in the adjusted revenue to $226.62 million in the third quarter of FY 21, missing the analysts’ estimates for revenue of $234.44 million.
Moreover, for the third quarter of fiscal year 2021, Metal Coatings segment sales declined 10.5% to $115.6 million and operating income grew 5.2% to $28.7 million versus the comparable prior year quarter. For the third quarter of fiscal year 2021, Infrastructure Solutions segment sales fell 31.5% to $111.0 million, as compared to $161.9 million in the same quarter of the prior year.
The company anticipates fiscal 2021 fourth quarter financial results to be more than the fiscal 2020 fourth quarter adjusted earnings per share of $0.47 per diluted share, but the company expects fourth quarter results to be below the third quarter results.