FORT WORTH, Texas - AZZ Inc . (NYSE: NYSE:AZZ), a major provider of metal coating solutions, announced today that its Board of Directors has approved a cash dividend for the first quarter of the fiscal year 2025. Shareholders will receive $0.17 per share, payable on July 31, 2024, to those on record by July 10, 2024.
The company, which specializes in hot-dip galvanizing and coil coating, indicated that while it plans to continue issuing regular quarterly dividends, future payouts remain subject to review and will be determined by the Board based on the company's performance, financial health, and business outlook.
This announcement comes as part of AZZ's ongoing efforts to deliver shareholder value. However, it's important to note that dividends are never guaranteed and can fluctuate with the company's results and economic conditions.
AZZ's forward-looking statements, including those related to future dividend payments and business performance, are subject to various risks and uncertainties. Factors such as changes in customer demand, cost increases for labor and raw materials, supply chain disruptions, and broader economic conditions could impact the company's financial outcomes.
Investors are reminded that forward-looking statements reflect current expectations and may change. The company does not undertake any obligation to update these statements in light of new information or future events.
This financial update is based on a press release statement from AZZ Inc. and provides a snapshot of the company's dividend policy for the upcoming quarter.
In other recent news, AZZ Inc. has been the focus of several significant developments. Evercore ISI recently initiated coverage on AZZ shares, citing the company's transformation and setting a price target of $90. The firm highlighted AZZ's recent acquisition of a pre-coating business and financial restructuring, which has streamlined the capital structure and reduced debt. Jason Crawford has been appointed as AZZ's new CFO, a strategic move that leverages Crawford's extensive finance experience. AZZ also announced a public offering of 4 million shares, with the intention of using the proceeds for the redemption of its 6.0% Series A Convertible Preferred Stock.
In terms of financial performance, AZZ reported record-breaking sales for fiscal 2024, reaching $1.54 billion, and a significant rise in net income from continuing operations to $101.6 million. Adjusted earnings per share grew to $4.53, while adjusted EBITDA increased by 24.8% to $333.6 million. These financial results reflect the company's strategic efforts to improve its market position and financial health.
Analyst firms Jefferies and B.Riley have also shared their perspectives on AZZ. Jefferies initiated coverage with a Buy rating, emphasizing growth from reshoring and infrastructure, while B.Riley raised its stock price target for AZZ following strong earnings, maintaining its Buy rating. These insights underscore AZZ's momentum in the market and potential for future growth.
InvestingPro Insights
AZZ Inc. (NYSE: AZZ) continues to demonstrate its commitment to shareholder returns, with the recent dividend announcement reinforcing a track record of consistent payouts. According to InvestingPro Tips, AZZ has not only maintained dividend payments for 15 consecutive years but is also trading at a low P/E ratio relative to near-term earnings growth, indicating potential value for investors looking at earnings potential. Additionally, the company has shown a high return over the last year, with an impressive 88.97% one-year price total return as of the latest data.
From a financial health perspective, the company's liquid assets exceed its short-term obligations, providing a cushion that may reassure investors looking for stability. This financial robustness is complemented by an InvestingPro Data metric showing a robust revenue growth of 16.16% over the last twelve months as of Q4 2024, which could be a signal of strong operational performance.
The company's share price has experienced a significant uptick, with a six-month price total return of 34.54%, and is currently trading close to its 52-week high at 88.79% of that peak. This price performance is a testament to the market's positive reception to AZZ's business activities and financial results.
For investors seeking more in-depth analysis and additional InvestingPro Tips, visiting the dedicated InvestingPro page for AZZ at https://www.investing.com/pro/AZZ could provide valuable insights. There are currently 7 additional tips available, which can be accessed with an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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