January 5, 2026
Finance

Analysts Adjust Outlook for AZZ Inc. Ahead of Q3 2025 Earnings Release

Wall Street Forecasts Show Mixed Price Target Revisions Despite Expected Earnings Growth

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Summary

AZZ Inc., a specialty industrial equipment company based in Draper, Utah, is set to report its third-quarter earnings on January 7, 2025. Analysts project earnings per share growth compared to the same period last year, with revenue expectations also showing an increase. Recent analyst activity reflects varied adjustments in price targets and ratings following the company's previous quarter performance.

Key Points

Expected Q3 2025 earnings per share of $1.49, up from $1.39 year-over-year.
Projected revenue growth to approximately $419.47 million compared to $403.65 million previously.
Stock price increased 2.4% to close at $109.74 despite prior quarter underperformance.
Analyst ratings largely positive but feature some price target reductions and a downgrade.

As AZZ Inc. (NYSE: AZZ) prepares to release its financial results for the third quarter after the market closes on Wednesday, January 7, 2025, Wall Street analysts have been revisiting their expectations for the company. Headquartered in Draper, Utah, AZZ operates within the industrial equipment sector, a niche that requires close attention to factors such as pricing power and distribution efficiency among its operational metrics.

Current consensus analyst estimates indicate that AZZ will report earnings per share (EPS) of $1.49 for the third quarter. This anticipated figure represents an improvement over the $1.39 EPS recorded for the same period in the previous year, suggesting a year-over-year increase in profitability. Accompanying this earnings projection is an expected rise in revenue to approximately $419.47 million, up from $403.65 million a year earlier. These data points are aggregated from Benzinga Pro analytics.

These projections come on the heels of AZZ's second quarter results, which were disclosed on October 9 and fell short of market expectations. Despite that setback, the company’s shares exhibited resilience, gaining 2.4% to close at $109.74 on the Friday before the earnings announcement week. This positive stock performance ahead of earnings may reflect investor optimism or positioning ahead of potentially favorable third quarter outcomes.

To understand the evolving market sentiment, it is instructive to examine the recent activities of some of the leading analysts who have tracked AZZ shares closely:

  • Timna Tanners of Wells Fargo maintained an Overweight rating on AZZ as of October 10, 2025, but reduced her price target to $121 per share from a prior $128. Notably, Tanners carries an accuracy rating of 71%, indicating a solid track record in her stock assessments.
  • Lucas Pipes from B. Riley Securities upheld a Buy rating on September 17, 2025. Pipes adjusted his price target upwards from $131 to $140, reflecting increased confidence amid evolving business conditions. His accuracy rate stands at 78%, highlighting relatively high reliability in his analyses.
  • Stephen Richardson of Evercore ISI Group maintained an Outperform rating dated July 9, 2025, while raising his price target from $90 to $108. Richardson's track record shows a 61% accuracy rate.
  • John Franzreb at Sidoti & Co. made a contrasting move on June 9, 2025, by downgrading AZZ from a Buy to a Neutral rating, alongside a price target of $101. Franzreb’s accuracy rate is relatively strong at 74%.
  • Gerry Sweeney of Roth MKM initiated coverage on AZZ on February 11, 2025, recommending a Buy stance and setting a price target at $108. His accuracy rating is 66%.

The range of analyst opinions and price targets underscores an environment of both cautious optimism and measured skepticism regarding AZZ’s near-term outlook. On one hand, the majority of these respected analysts maintain positive ratings—Buy, Overweight, or Outperform—while some have moderated expectations slightly by adjusting price targets downward or to more conservative levels. On the other hand, the downgrade to Neutral by Sidoti & Co. signals a recognition of potential challenges or a reevaluation of near-term growth drivers.

Investors considering a position in AZZ stock may consult Benzinga’s Analyst Stock Ratings platform. This resource enables filtering and sorting of analyst rankings by various criteria including ticker symbol, company name, analyst firm, and changes in rating, facilitating informed decision-making based on the most current research.

Moreover, Benzinga Rankings assign actionable metrics that gauge aspects such as momentum, growth, quality, and value. For AZZ, these rankings reveal a momentum score of 75.78 and a quality score of 89.08, contrasting with a lower value metric of 39.07, which may influence investor sentiment depending on individual strategy preferences.

While earnings forecasts are positive compared to the prior year, risks remain inherent in the company’s trajectory. The previous quarter’s underperformance raises concerns about consistent earnings momentum, cost management, and external market factors impacting operations. The varying analyst views reflect acknowledgement of these uncertainties.

As AZZ approaches its Q3 earnings announcement, focused attention will be paid to how actual results align with the broad spectrum of analyst estimates. The detailed price target adjustments and rating changes provide nuanced guidance on where expectations currently stand in the market.

Key Points:

  • AZZ is expected to report Q3 earnings of $1.49 per share, an increase from $1.39 in the prior year.
  • Revenue projections stand at around $419.47 million, up from $403.65 million year-over-year.
  • Shares rose 2.4% to $109.74 following a subpar Q2 performance.
  • Analyst ratings and price targets show both upward and downward revisions, reflecting mixed market sentiment.

Risks and Uncertainties:

  • Q2 results were weaker than expected, highlighting potential volatility in earnings performance.
  • Some analysts have reduced price targets or ratings, indicating perceived near-term risks.
  • Market conditions or operational factors not detailed could impact upcoming quarter results.

In sum, AZZ’s forthcoming earnings report and the analyst community’s recent activity illustrate a company navigating a complex operating landscape with positive growth signals tempered by past performance challenges. Market participants will look closely at the data to assess whether the stock’s recent gains are supported by fundamental improvements.

Risks
  • Second quarter results fell short of expectations, introducing earnings momentum risk.
  • Price target reductions and a Neutral rating downgrade point to potential near-term uncertainties.
  • Limited visibility on factors affecting future earnings beyond analyst projections.
Disclosure
Education only / not financial advice
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