Join today and have your say! It’s FREE!
We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}

Join today with :

or

By providing my email, I consent to receiving investment related electronic messages from Stockhouse.
Sign in with existing account
Please Try Again
{{ error }}

Sign In With :

or

Password Hint : {{passwordHint}}
Forgot Password?
Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Apogee Enterprises Shares Trade Up 12.5% on Q2 Earnings and Yearly Outlook

Streetwise Reports
0 Comments|September 18, 2019

Shares of Apogee Enterprises are trading higher today after the commercial and architectural glass and framing company announced Q2/20 earnings and updated its estimates for the rest of the year.

1.jpg

This morning commercial and architectural glass fabricator and window framing company Apogee Enterprises Inc. (APOG:NASDAQ) announced its second-quarter earnings for the period ending August 31, 2019. For Q2/20, the company reported revenue was $357.1 million, compared to $362.1 million in Q2/19. Earnings per diluted share in were $0.72 in Q2/20, equal to that in Q2/19.

The firm advised that Architectural Framing Systems revenue in Q2/20 was $187.4 million, compared to $189.9 million in Q2/19, and that the segment's backlog stands at $388 million, compared to $407 million in Q1/20. The company's Architectural Glass segment grew 13% in Q2/20, with revenue of $99.1 million compared to $88.1 million in Q2/19, primarily driven by increased volume and a more favorable sales mix. Architectural Services revenue decreased to $61.6 million in Q2/20, compared to $76.5 million in Q2/19 on lower volumes due to the timing of project activity. The company indicated that this segment continued to have strong order flow during Q2/20, with segment backlog increasing to $502 million, from $483 million in Q1/20. Large-Scale Optical revenue was $20.8 million in Q2/20, up 2% compared to $20.4 million in Q2/19 due to improved sales mix.

The company's CEO, Joseph F. Puishys, commented, "We delivered solid operational and financial performance in Q2/20, with results largely in-line with our expectations...Our Architectural Glass segment made significant year-over-year improvements, with increased revenue and margins, and Architectural Services continued to build on its record backlog. We also made substantial progress toward completing the last remaining legacy EFCO project, tracking as expected to our schedule and cost estimates. We are delivering on our commitments and see positive momentum in our business...Looking forward, we remain confident that our strategy to diversify revenue streams, broaden our growth opportunities, and improve the efficiency and productivity of our operations positions the company well for future earnings growth and more consistent operating performance...During the quarter we progressed on a number of initiatives to advance this strategy. We completed a facility upgrade that we expect to significantly enhance productivity and margins in our EFCO business. We also began to implement plans to enhance profitability across the entire Framing Systems segment and took initial steps to increase supply chain integration, reduce procurement costs, and optimize our facility footprint. Finally, we made significant progress on a new operation that will be focused on the short lead-time segment of the architectural glass market, which continues our efforts to diversify our business mix and provide new opportunities for long-term growth."

In the release, Apogee advised that fiscal year-to-date it has returned $29.2 million of cash to shareholders through share repurchases and dividend payments, up from $8.8 million in the prior year period. Additionally, the company reduced its total debt during Q2/20 by $20 million to $273 million, compared to $293 million at the end of Q1/20.

The company also reaffirmed guidance for FY/20. For the full-year FY/20 the company continues to expect revenue growth of 1–3% and operating margins of 8.2–8.6%. Diluted earnings per share are estimated to be in the range of $3.00–$3.20, which excludes the possible benefit of any potential expense recovery associated with the EFCO-related charges the company recorded in the previous fiscal year.

Apogee Enterprises was founded in 1949 and is headquartered in Minneapolis, Minn. Apogee is a $1.1 billion market cap company engaged in the design and development of distinctive glass solutions for enclosing commercial buildings and framing art. The firm operates through four main business segments: Architectural Glass, which fabricates coated glass used in customized window and wall systems; Architectural Services, which designs, engineers, fabricates and installs the walls of glass, windows and other curtain wall products making up the outside skin of commercial and institutional buildings; Architectural Framing Systems, which designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtain wall, storefront and entrance systems; and Large-Scale Optical Technologies, which manufactures value-added glass and acrylic products for custom picture framing and fine art displays.

Shares of Apogee Enterprises opened today at $44.50 (+$3.26, +7.90%) over yesterday's $41.24 closing price. The stock has traded today between $42.84 and $46.39/share and at present is trading at $46.39 (+$5.15, +12.49%).


Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.


Comments

No comments yet. Be first to comment!

Leave a Comment

You must be logged in to access this feature.



×

StockTalk
Get our FREE StockTalk Investor Guides by sector as they are released!

Stay on top of sector specific news, get industry leaders insights and our best content, delivered to your email.

You are already a member! Please enter your password to sign in.