Why AZZ Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of electrical equipment and components manufacturer AZZ (NYS: AZZ) jumped as much as 19% in trading today after the company released earnings.

So what: Revenue rose 11% to $127 million in the first quarter and the company now expects full-year revenue to be $550 million. Earnings per share of $0.96 easily topped analyst estimates of $0.81 per share and management now expects full-year earnings per share of $4.10-$4.30, much higher than previous estimates.

Now what: Beating earnings estimates is always positive, but this earnings report crushed what analysts had expected. Shares now trade at slightly under 15 times 2012 earnings and momentum is headed in the right direction. I think shares can continue to move higher and AZZ will outperform the market throughout the rest of the year.

Interested in more info on AZZ? Add it to your watchlist byclicking here.

The article Why AZZ Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of AZZ. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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