Another Disappointing Quarter for AZZ Inc

Having previously updated full-year 2018 guidance at the end of September, investors were already prepared for the negative news in AZZ Inc's (NYSE: AZZ) second-quarter results. Management gave a plethora of reasons why AZZ's performance is lagging expectations in fiscal 2018 and promptly guided investors toward thinking about a stronger 2019.

CEO Tom Ferguson began the earnings call by outlining the reasons why AZZ had such a tough quarter, but before going into them, let's look at their impact. As you can see below, the energy segment was hit the hardest, but both segments reported disappointing sales performance.

In addition, don't get too excited by the margin and income expansion in the metal coatings segment. In last year's second quarter, AZZ took $7.3 million worth of charges. Adjusting for the charges means metal coatings income rose just 4.9% in the second quarter.

Source: Fool.com