AZZ's (NYSE:AZZ) Problems Go Beyond Weak Profit

Simply Wall St.10-22

A lackluster earnings announcement from AZZ Inc. (NYSE:AZZ) last week didn't sink the stock price. However, we believe that investors should be aware of some underlying factors which may be of concern...

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(NYSE:AZZ) last week didn't sink the stock price. However, we believe that investors should be aware of some underlying factors which may be of concern...</p>\n\n<a href=\"https://finance.yahoo.com/news/azzs-nyse-azz-problems-beyond-122338113.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4086","symbol_name":"建筑产品","start_time":0,"source_url":"https://finance.yahoo.com/news/azzs-nyse-azz-problems-beyond-122338113.html","article_id":"2477336235","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/j_glbG3P7PjhDX7PYytISw--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/90509995d1a4d3aee8c27acbe693a708"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477336235","pubTimestamp":1729599818,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"A lackluster earnings announcement from AZZ Inc.  last week didn't sink the stock price. 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So you may wish to see this free  collection of companies boasting high return on equity","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4086":"建筑产品","BK4585":"ETF&股票定投概念","AZZ":"Azz Inc","BK4588":"碎股","BK4178":"家庭装饰零售","BK4182":"重型电气设备","NYSE":"纽交所"},"translate_title":"AZZ(NYSE：AZZ)的问题不仅仅是利润疲软","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AZZ":1,"NYSE":1},"content_text":"A lackluster earnings announcement from AZZ Inc. (NYSE:AZZ) last week didn't sink the stock price. However, we believe that investors should be aware of some underlying factors which may be of concern. \n Check out our latest analysis for AZZ \n\n\n\n  NYSE:AZZ Earnings and Revenue History October 22nd 2024\n \n\n To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. As it happens, AZZ issued 19% more new shares over the last year. As a result, its net income is now split between a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of AZZ's EPS by clicking here. \n A Look At The Impact Of AZZ's Dilution On Its Earnings Per Share (EPS) \n Unfortunately, AZZ's profit is down 41% per year over three years. Even looking at the last year, profit was still down 47%. Like a sack of potatoes thrown from a delivery truck, EPS fell harder, down 51% in the same period. And so, you can see quite clearly that dilution is influencing shareholder earnings. \n In the long term, if AZZ's earnings per share can increase, then the share price should too. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical \"share\" of the company's profit. \n That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. \nOur Take On AZZ's Profit Performance\n Over the last year AZZ issued new shares and so, there's a noteworthy divergence between EPS and net income growth. Therefore, it seems possible to us that AZZ's true underlying earnings power is actually less than its statutory profit. Sadly, its EPS was down over the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you'd like to know more about AZZ as a business, it's important to be aware of any risks it's facing. For example, we've found that AZZ has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis. \n Today we've zoomed in on a single data point to better understand the nature of AZZ's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free  collection of companies boasting high return on equity, or  this list of stocks with high insider ownership. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477336235"}