AZZ Inc. Earnings Report Preview: Anticipated Financial Indicators and Implications
What to Expect from AZZ’s Earnings Report
Wall Street analysts are forecasting a rise in earnings for AZZ (AZZ) for the quarter ending November 2024, driven by increased revenues. This consensus outlook is crucial for assessing the company’s financial health, but the actual stock price will largely depend on how the results stack up against these expectations.
The earnings report is set for January 8, 2025. A better-than-expected performance could lift the stock, while disappointing results might reduce its value.
Zacks Consensus Estimate Insights
AZZ is projected to report earnings of $1.27 per share, reflecting an increase of 6.7% from the previous year. Revenue is anticipated to reach $400.28 million, which is a year-over-year growth of 4.9%.
Recent Estimate Revisions
Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.74%. This change indicates how analysts have collectively updated their expectations based on new information.
It is important to note that a general change doesn’t always represent the direction of each individual analyst’s revisions.
Understanding Earnings Whisper
Revisions made before earnings announcements can provide insights into the company’s performance during the reporting period. This concept is central to the Zacks Earnings ESP model, which measures the Most Accurate Estimate against the Zacks Consensus Estimate.
A superior or inferior Earnings ESP reading signals the expected variance of actual earnings from the consensus estimate. Positive readings can be strong indicators of earnings surprises, especially when coupled with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold). Historical data suggests that this combination leads to positive surprises roughly 70% of the time.
Conversely, a negative Earnings ESP does not guarantee an earnings miss but complicates predictions about a potential earnings beat.
Current Numbers for AZZ: Trends to Note
AZZ’s Most Accurate Estimate is currently lower than the Zacks Consensus Estimate, indicating a pessimistic trend among analysts regarding the company’s earnings potential. This has culminated in an Earnings ESP of -5.51%. Despite this, AZZ holds a Zacks Rank of #3, making it challenging to confidently predict an earnings beat.
Analyzing Past Earnings Performance
Past earnings surprises influence future estimates as analysts gauge a company’s ability to meet or exceed expectations. In the most recent quarter, AZZ was expected to earn $1.26 per share but unexpectedly achieved $1.37, showcasing a surprise of +8.73%. Over the last four quarters, the company has consistently surpassed EPS estimates.
Final Thoughts
The impact of an earnings beat or miss on stock performance is not straightforward. Often, stocks may decline despite beating earnings due to other negative factors. Conversely, some manage to increase in value even after missing earnings expectations.
Investing in stocks poised to exceed earnings expectations can be a beneficial strategy. Therefore, it’s worth reviewing both the Earnings ESP and Zacks Rank of a company prior to its earnings report. AZZ currently does not appear to be a promising earnings-beat candidate, but assessing a broader view can provide clarity on investment decisions as the earnings release date approaches.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
