Nasdaq Rises 0.2% as Tech Stocks Rebound
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Investors bought the early-session dip in the Tech space on Wednesday, helping the sector join Energy as the only two areas of the market to register gains. Consequently, Nasdaq Composite finished the day up 0.2% and S&P 500 was well off the intra-day lows to end the session down just 0.3%, rising above 7,480 into the close after dipping as low as 7,420 earlier. Semiconductors, memory, and servers were especially strong within the broader AI bounce-back theme, while Software stocks softened after Tuesday's rally. Large-cap Growth performance also exceeded that of SMID and Value.Markets remain on edge however, with volatility in the Tech arena compounded by the ongoing geopolitical concerns. Headlines questioning whether the overall state of U.S.-Iran ceasefire can be preserved after the two sides exchanged attacks over the past 48 hours have propped up Energy prices. In the evening session, WTI Crude Oil is now above $74 per barrel. S&P e-minis and Nasdaq 100 index futures are down by about a decimal. Precious metals also remain under pressure, with higher oil price narrative and its inflationary implications supporting the US Dollar vis-a-vis an up-creep in yields and assumptions of tighter-for-longer Fed policy. This was further reinforced in today's FOMC minutes from last month's meeting tilting decidedly more hawkish.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -AZZ Inc.up 8.3%ALSO HIGHER -Ampco-Pittsburghup 13.7% after announcing increase in customer order activityLarimar Therapeuticsup 3.3% after insider buyAeroVironmentup 1.2% after providing medium-term targetsDOWN AFTER EARNINGS -Levi Straussdown 6.0%PriceSmartdown 2.7%ALSO LOWER -MDA Space Ltd.down 6.9% after equity offeringCostco Wholesaledown 1.2% after June comps data
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Analyst Views on AZZ
Wall Street analysts forecast AZZ stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 144.050
Low
118.00
Averages
128.50
High
141.00
Current: 144.050
Low
118.00
Averages
128.50
High
141.00
About AZZ
AZZ Inc. is a provider of hot-dip galvanizing and coil coating solutions to a range of end-markets in North America. The Company operates through three segments. Its AZZ Metal Coatings segment provides metal coating solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating to the North American steel fabrication industry and other industries. AZZ Precoat Metals segment provides aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coils, primarily serving the construction, transportation and other end markets in North America. The AZZ Infrastructure Solutions segment holds a non-controlling interest in AIS Investment Holdings LLC, which is primarily dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in markets worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AZZ Scheduled to Announce Q1 Earnings on July 8
- Earnings Announcement: AZZ is set to release its Q1 earnings report on July 8 after market close, with consensus EPS estimated at $1.69, reflecting a 5.1% year-over-year decline, while revenue is projected at $434.52 million, indicating a 3.0% year-over-year increase, showcasing the company's stability in the market.
- Historical Performance Review: Over the past two years, AZZ has exceeded EPS estimates 88% of the time and revenue estimates 63% of the time, indicating a degree of reliability and market confidence in the company's financial performance.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and four downward adjustments, while revenue estimates have experienced one upward revision and three downward adjustments, reflecting analysts' cautious outlook on the company's future performance, which may impact investor confidence.
- Dividend Increase and Outlook: AZZ raised its quarterly dividend by 20% to $0.24 per share and reiterated its fiscal 2027 sales outlook of $1.725 billion to $1.775 billion, with adjusted EPS projected between $6.50 and $7.00, demonstrating strong support from data center and T&D demand.
See More
AZZ Reports Q1 2027 Earnings with Strong EPS and Revenue Growth
- Earnings Beat: AZZ's Q1 Non-GAAP EPS of $1.85 exceeds expectations by $0.16, indicating strong profitability and boosting investor confidence in the company's financial health.
- Revenue Growth: The company reported Q1 revenue of $448.5 million, a 6.3% year-over-year increase, surpassing market expectations by $13.98 million, reflecting robust demand recovery in the market.
- Revised Financial Guidance: AZZ raised its FY2027 sales guidance to between $1.725 billion and $1.775 billion, with adjusted EBITDA expectations increased to $375 million to $415 million, showcasing the company's optimistic outlook for future performance.
- Dividend Increase: AZZ announced a 20% increase in its quarterly dividend to $0.24 per share, demonstrating a commitment to shareholder returns while reinforcing market recognition of its long-term investment value.
See More
AZZ Reports Decline in Q1 Profit
- Profit Decline: AZZ reported a first-quarter net profit of $52.006 million, or $1.72 per share, a significant drop from last year's $170.908 million and $5.66 per share, indicating a notable weakening in the company's profitability.
- Adjusted Earnings: Excluding items, AZZ's adjusted earnings were $55.768 million, or $1.85 per share, which, while lower, still exceeds the unadjusted earnings per share, reflecting the company's efforts in cost management.
- Revenue Growth: The company experienced a 6.3% year-over-year revenue increase to $448.530 million, up from $421.962 million last year, demonstrating stability in market demand and competitiveness of its products.
- Future Guidance: AZZ provided full-year EPS guidance of $6.75 to $7.15 and revenue expectations of $1.80 billion to $1.85 billion, indicating a cautiously optimistic outlook for future performance despite the current profit decline.
See More
Major Earnings Reports Expected: AZZ, Levi Strauss, PriceSmart
- Earnings Report Preview: Major companies reporting earnings on Wednesday include AZZ, Levi Strauss, and PriceSmart, with the market eagerly anticipating their performance, particularly in the context of economic recovery where positive financial data is sought by investors.
- AZZ Performance Focus: AZZ's earnings report will be closely watched, as investors are keen to see its performance in the infrastructure and energy sectors, especially given the current market emphasis on sustainability and infrastructure investment.
- Levi Strauss Market Reaction: Levi Strauss's earnings will reveal its market performance in the apparel industry, particularly as it faces intensified competition and changing consumer preferences, with investors hoping for growth in sales and profits.
- PriceSmart Earnings Outlook: PriceSmart's earnings report will provide crucial data on its performance in Latin America and the Caribbean, with the market focusing on membership growth and sales changes to assess its future growth potential.
See More
SK Hynix Launches $28 Billion U.S. Listing Amid Chip Demand Surge
- U.S. Listing Initiative: SK Hynix is set to raise approximately $28 billion through its U.S. listing, with plans to issue 17.79 million ADRs representing a tenth of a common share, enabling the company to attract American investors eager for memory chips and semiconductors, thereby enhancing its market competitiveness.
- Competing with Micron: This listing allows SK Hynix to trade alongside rival Micron Technology, which recently announced a $9.3 billion expansion plan on July 4 to increase advanced memory capacity for AI workloads, expected to begin equipment shipments in 2028, intensifying market competition.
- Positive Market Reaction: Following the announcement of SK Hynix's listing, Micron's stock rose about 2% in pre-market trading, indicating optimistic market sentiment towards the semiconductor sector and reflecting investor expectations for SK Hynix's future performance.
- Optimistic Industry Outlook: With the rapid advancement of AI technologies, the demand for memory chips continues to rise, and SK Hynix's listing not only provides financial backing but could significantly enhance its market share and profitability in the coming years, further solidifying its position in the global semiconductor market.
See More
Upcoming Earnings Season and Economic Data Insights
- Earnings Preview: The earnings season officially kicks off from July 13 to 17, with major companies like Levi Strauss, PepsiCo, and Delta Air Lines reporting, prompting market focus on consumer spending and inflationary pressures impacting performance.
- Oil Prices and Consumer Spending: Despite a 27% drop in U.S. WTI crude prices over the past month, consumer gas prices have only decreased by 10.5%, which may influence purchasing decisions, particularly for brands like Levi's.
- Service Sector Data Release: This week will see the release of the S&P Global Services PMI and ISM Services PMI, aimed at providing timely insights into business activity in the U.S. services sector, aiding in the assessment of economic health.
- Semiconductor Industry Volatility: The semiconductor sector faced severe selling last week, with the iShares Semiconductor ETF and VanEck Semiconductor ETF nearing their 50-day moving averages, and the market will watch for whether buyers will support a rebound in this sector.
See More
AZZ Scheduled to Announce Q1 Earnings on July 8
- Earnings Announcement: AZZ is set to release its Q1 earnings report on July 8 after market close, with consensus EPS estimated at $1.69, reflecting a 5.1% year-over-year decline, while revenue is projected at $434.52 million, indicating a 3.0% year-over-year increase, showcasing the company's stability in the market.
- Historical Performance Review: Over the past two years, AZZ has exceeded EPS estimates 88% of the time and revenue estimates 63% of the time, indicating a degree of reliability and market confidence in the company's financial performance.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and four downward adjustments, while revenue estimates have experienced one upward revision and three downward adjustments, reflecting analysts' cautious outlook on the company's future performance, which may impact investor confidence.
- Dividend Increase and Outlook: AZZ raised its quarterly dividend by 20% to $0.24 per share and reiterated its fiscal 2027 sales outlook of $1.725 billion to $1.775 billion, with adjusted EPS projected between $6.50 and $7.00, demonstrating strong support from data center and T&D demand.
See More
AZZ Reports Q1 2027 Earnings with Strong EPS and Revenue Growth
- Earnings Beat: AZZ's Q1 Non-GAAP EPS of $1.85 exceeds expectations by $0.16, indicating strong profitability and boosting investor confidence in the company's financial health.
- Revenue Growth: The company reported Q1 revenue of $448.5 million, a 6.3% year-over-year increase, surpassing market expectations by $13.98 million, reflecting robust demand recovery in the market.
- Revised Financial Guidance: AZZ raised its FY2027 sales guidance to between $1.725 billion and $1.775 billion, with adjusted EBITDA expectations increased to $375 million to $415 million, showcasing the company's optimistic outlook for future performance.
- Dividend Increase: AZZ announced a 20% increase in its quarterly dividend to $0.24 per share, demonstrating a commitment to shareholder returns while reinforcing market recognition of its long-term investment value.
See More
AZZ Reports Decline in Q1 Profit
- Profit Decline: AZZ reported a first-quarter net profit of $52.006 million, or $1.72 per share, a significant drop from last year's $170.908 million and $5.66 per share, indicating a notable weakening in the company's profitability.
- Adjusted Earnings: Excluding items, AZZ's adjusted earnings were $55.768 million, or $1.85 per share, which, while lower, still exceeds the unadjusted earnings per share, reflecting the company's efforts in cost management.
- Revenue Growth: The company experienced a 6.3% year-over-year revenue increase to $448.530 million, up from $421.962 million last year, demonstrating stability in market demand and competitiveness of its products.
- Future Guidance: AZZ provided full-year EPS guidance of $6.75 to $7.15 and revenue expectations of $1.80 billion to $1.85 billion, indicating a cautiously optimistic outlook for future performance despite the current profit decline.
See More
Major Earnings Reports Expected: AZZ, Levi Strauss, PriceSmart
- Earnings Report Preview: Major companies reporting earnings on Wednesday include AZZ, Levi Strauss, and PriceSmart, with the market eagerly anticipating their performance, particularly in the context of economic recovery where positive financial data is sought by investors.
- AZZ Performance Focus: AZZ's earnings report will be closely watched, as investors are keen to see its performance in the infrastructure and energy sectors, especially given the current market emphasis on sustainability and infrastructure investment.
- Levi Strauss Market Reaction: Levi Strauss's earnings will reveal its market performance in the apparel industry, particularly as it faces intensified competition and changing consumer preferences, with investors hoping for growth in sales and profits.
- PriceSmart Earnings Outlook: PriceSmart's earnings report will provide crucial data on its performance in Latin America and the Caribbean, with the market focusing on membership growth and sales changes to assess its future growth potential.
See More
SK Hynix Launches $28 Billion U.S. Listing Amid Chip Demand Surge
- U.S. Listing Initiative: SK Hynix is set to raise approximately $28 billion through its U.S. listing, with plans to issue 17.79 million ADRs representing a tenth of a common share, enabling the company to attract American investors eager for memory chips and semiconductors, thereby enhancing its market competitiveness.
- Competing with Micron: This listing allows SK Hynix to trade alongside rival Micron Technology, which recently announced a $9.3 billion expansion plan on July 4 to increase advanced memory capacity for AI workloads, expected to begin equipment shipments in 2028, intensifying market competition.
- Positive Market Reaction: Following the announcement of SK Hynix's listing, Micron's stock rose about 2% in pre-market trading, indicating optimistic market sentiment towards the semiconductor sector and reflecting investor expectations for SK Hynix's future performance.
- Optimistic Industry Outlook: With the rapid advancement of AI technologies, the demand for memory chips continues to rise, and SK Hynix's listing not only provides financial backing but could significantly enhance its market share and profitability in the coming years, further solidifying its position in the global semiconductor market.
See More
Upcoming Earnings Season and Economic Data Insights
- Earnings Preview: The earnings season officially kicks off from July 13 to 17, with major companies like Levi Strauss, PepsiCo, and Delta Air Lines reporting, prompting market focus on consumer spending and inflationary pressures impacting performance.
- Oil Prices and Consumer Spending: Despite a 27% drop in U.S. WTI crude prices over the past month, consumer gas prices have only decreased by 10.5%, which may influence purchasing decisions, particularly for brands like Levi's.
- Service Sector Data Release: This week will see the release of the S&P Global Services PMI and ISM Services PMI, aimed at providing timely insights into business activity in the U.S. services sector, aiding in the assessment of economic health.
- Semiconductor Industry Volatility: The semiconductor sector faced severe selling last week, with the iShares Semiconductor ETF and VanEck Semiconductor ETF nearing their 50-day moving averages, and the market will watch for whether buyers will support a rebound in this sector.
See More
