AZZ (AZZ 47.85, -3.10) has slid 6.1% after lowering its guidance for fiscal year 2018. Today's early decline leaves the stock, which is down 25.1% year-to-date, on track for its lowest close of the year.
The company, which provides galvanizing, welding solutions, specialty electrical equipment, and engineered services, announced that it expects full-year revenue to be between $825 million and $885 million, down from previous guidance for sales between $880 million and $950 million. The company also lowered its bottom-line guidance, expecting earnings between $1.80 and $2.30 per share, down from previous expectations for earnings between $2.60 and $3.10 per share.
AZZ's guidance reduction was impacted by a series of factors. Hurricanes Harvey and Irma were a negative for the company's refinery turnaround efforts while the closure of the VC Summer Nuclear Project and fallout from the Westinghouse nuclear bankruptcy weighed on conditions in the U.S. nuclear market. Furthermore, the company saw lower than expected electric utility spending in Saudi Arabia.
The company expects to see a rebound in activity during the early portion of next year. The company is looking to improve margins and competitiveness of its two business segments. The integration of recently-acquired Enhanced Powder Coating and Powergrid Systems is going as expected.
The company will release its full earnings report ahead of the opening bell on October 3, 2017.