UPDATE: AZZ Posts Upbeat Q3 Profit, Revises Guidance

reported a rise in its fiscal third-quarter profit. The Fort Worth, Texas-based company posted a quarterly profit of $20 million, or $0.77 per share, versus a year-ago profit of $18.4 million, or $0.72 per share. Excluding non-recurring gains, the company earned $0.75 per share. Its revenue climbed 13.7% to $224.8 million from $197.8 million in the period. However, analysts were expecting earnings of $0.74 per share on revenue of $230.20 million. Revenue for AZZ's Energy Segment climbed 16.1% to $130.1 million, while revenue for the Galvanizing Services Segment jumped 10.6% to $94.8 million. Consolidated operating margin widened to 14.6% from 12.8%. At the end of the third quarter, AZZ's backlog was $300.3 million, versus $290.0 million at the end of the year-ago quarter. Tom Ferguson, president and chief executive officer of AZZ, said, "Financial results for the third quarter were solid. We achieved double-digit revenue increases in both of our business lines, Energy Segment margins expanded as we gained traction on driving operating efficiencies, and we achieved selective pricing improvements. Quoting activity for the quarter reflected the seasonal nature of the business. The current backlog in our Energy Segment remains solid and we believe we are positioned to close out the fiscal year on a strong note." For the full year, AZZ projects earnings of $2.40 to $2.60 per share, on revenue of $825 million to $850 million. The company had earlier expected earnings of $2.40 to $2.80 per share, on revenue of $850 million to $900 million. AZZ shares gained 3.32% to close at $45.41 yesterday.