Why AZZ Shares Are Trading Higher Today - AZZ (NYSE:AZZ)

AZZ Inc AZZ reported first-quarter FY23 sales growth of 36.8% year-over-year to $314.4 million, beating the consensus of $268.09 million.
Adjusted EPS jumped 59.1% Y/Y to $1.40, beating the consensus of $1.03.
The gross margin expanded by 170 bps to 26.9%. The operating income increased by 30% Y/Y to $39.9 million, and the margin contracted by 70 bps to 12.7%.
Sales by segments: Metal Coatings $160.8 million (+25.9% Y/Y), Infrastructure Solutions $109.9 million (+7.6% Y/Y) and Precoat Metals $43.7 million (acquired in May 2022).
EBITDA was $54.2 million, up 26.8%, compared to Q1 2022.
Backlog stood at $307.4 million at the end of the quarter, increasing 65.2% Y/Y, reflecting the growing demand for electrical products.
AZZ generated cash from operating activities in the quarter of $23.3 million, compared to $11.1 million a year ago.
At the end of the period, the company's cash and equivalents were $100.9 million.
Outlook: AZZ sees Q2 sales of $485 million - $510 million versus the consensus of $296.62 million.
Price Action: AZZ shares are trading higher by 2.84% at $42.20 on the last check Monday.

AZZ Q1 Earnings Top Estimates