Benzinga | Jan 10, 2022 07:55AM EST

AZZ Reports Mixed Q3 Results, Narrows FY22 EPS Outlook

* AZZ Inc (NYSE:AZZ) reported third-quarter FY22 sales growth of 2.3% year-over-year to $231.74 million, missing the consensus of $238.63 million.

* EPS improved 11.8% Y/Y to $0.85, beating the consensus of $0.82.

* Also Read: AZZ To Acquire Steel Creek For Undisclosed Sum

* The gross margin expanded by 46 bps to 24.6%. The operating income increased by 8% Y/Y to $30.09 million, and the margin expanded by 70 bps to 13%.

* Sales by segments: Metal Coatings $133.4 million (+15.4% Y/Y) and Infrastructure Solutions $98.4 million (-11.4% Y/Y).

* EBITDA was $39.8 million, up 0.5%, compared to 3Q21.

* Backlog stood at $217.7 million at the end of the quarter, increasing 24.9% Y/Y, reflecting the growing demand for electrical products.

* AZZ generated cash from operating activities year-to-date of $49.67 million, compared to $59.4 million a year ago.

* At the end of the period, the company's cash and cash equivalents were $20.33 million.

* FY22 Outlook: AZZ reaffirmed its sales expectations of $865 million - $925 million versus a consensus of $913.67 million.

* The company narrowed its EPS outlook to $3.00 - $3.20 (previous view $2.90 - $3.20) versus consensus of $3.14.

* Price Action: AZZ shares closed lower by 1.33% at $54.97 on Friday.