Earnings Preview For AZZ Inc. (AZZ)

AZZ Inc.

will be reporting 2011 fiscal fourth-quarter earnings after the closing bell. Analysts are calling for the company to earn a profit of $0.73 on revenues of $107.29 million. Earnings estimates have been steady over the past 60 days. The company manufactures electrical equipment and components for power generation, transmission and distribution, and industrial markets primarily in the United States and Canada. It operates in two segments, Electrical and Industrial Products, and Galvanizing Services. The stock has been on fire since late January, posting a terrific 30% gain since then. There is a lot of optimism built into the stock and the company must provide a much stronger than expected quarter for the stock to rise from here. Sales in its Galvanizing unit have been the growth engine of the company so investors will be keeping an eye on how much momentum it has left. Another key for the stock will be how the company is dealing with pricing pressures, especially abroad. AZZ has exceeded earnings estimates in three of the past four quarters and investors are expecting the company to once again provide a positive surprise. The stock is trading at 16.9x current-year estimates of $2.78, which is a premium to the broader stock market.