Apogee Enterprises, Inc.
APOG
reported third-quarter fiscal 2022 (ended Aug 28, 2021) adjusted earnings per share of 63 cents, surpassing the Zacks Consensus Estimate of 53 cents. The bottom line, however, declined 30% year over year.
Including one-time items, the company reported earnings per share of 44 cents compared with the year-ago quarter’s earnings per share of $1.42.
Apogee generated revenues of $334 million in the quarter under review, up 7% year over year, on solid growth in the Architectural Framing Systems and Architectural Services.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
Apogee Enterprises, Inc. price-consensus-eps-surprise-chart
|
Apogee Enterprises, Inc. Quote
Operational Update
Cost of sales in the fiscal third quarter climbed 10% year over year to $269 million. Gross profit declined 7% year over year to $65 million. The gross margin contracted 280 basis points to 19.4% in the quarter from the prior-year quarter’s 22.2%.
Selling, general and administrative (SG&A) expenses soared 137% year over year to $47 million. The adjusted operating income plunged 33% year over year to $21 million. The operating margin in the reported quarter was 6.3% compared with the prior-year quarter’s 10.1%.
Segment Performance
In the fiscal third quarter, revenues in the Architectural Framing Systems segment rose 11% year over year to $152 million, aided by pricing actions. The segment’s adjusted operating profit was $10.6 million compared with the year-ago quarter’s $7.2 million.
Revenues in the Architectural Glass segment decreased 12% year over year to $74 million on lower volumes, offset by an improved sales mix. The segment reported an adjusted operating income of $2.2 million, marking a 79% drop from the year-ago quarter’s operating profit of $10.8 million.
Revenues in the Architectural Services segment grew 20% year over year to $92 million, attributed to higher volumes. The segment’s operating profit increased 7% year over year to $9.2 million.
Revenues in the Large-Scale Optical Technologies segment went up 8% year over year to $27 million, driven by a favorable sales mix. The segment reported an adjusted operating profit of $6 million in the fiscal third quarter compared with the prior-year quarter’s $6.8 million.
Backlog
The Architectural Services segment’s backlog remained flat at $572 million with that reported in second-quarter fiscal 2022. Backlog in the Architectural Framing segment amounted to $419 million, down from $406 million at the end of second-quarter fiscal 2022.
Financial Position
Apogee had cash and cash equivalents of $78.3 million at the end of third-quarter fiscal 2022 compared with $47 million at the end of fiscal 2021. Cash generated from operating activities was $86.3 million in the first nine months of fiscal 2022 compared with the prior-year period’s $120 million.
Long-term debt was $162 million as of the end of third-quarter fiscal 2022 compared with $163 million as of fiscal 2021-end.
Apogee has returned $44.2 million of cash to shareholders through share repurchases and dividend payments so far in the fiscal year.
Fiscal 2022 Guidance
Apogee expects fiscal 2022 adjusted earnings per share between $2.25 and $2.40 compared with the previously mentioned $2.20-$2.40. The company expects significant cost inflation in the remaining period of fiscal 2022. It will implement pricing actions and cost-control measures to offset these impacts. Management projects capital expenditure of $25 million for fiscal 2022, lower than the previously stated $35 million, as the company has slowed some investments while conducting its strategic review.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 40.9% over the past year against the
industry
‘s decline of 37.9%.
Zacks Rank & Stocks to Consider
Apogee currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are
Greif, Inc.
GEF
,
SPX Flow
FLOW
and
Emerson Electric Co.
EMR
. While GEF and FLOW flaunt a Zacks Rank #1 (Strong Buy) at present, EMR carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Greif has an estimated earnings growth rate of 11.4% for the current year. In the past 30 days, the Zacks Consensus Estimate for GEF’s current-year earnings has been revised upward by 2%.
In a year, the company’s shares have gained 25%. Greif has a trailing four-quarter earnings surprise of 16.8%, on average.
SPX Flow has an expected earnings growth rate of 102% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
SPX Flow’s shares have gained 50% in a year’s time. FLOW has a trailing four-quarter earnings surprise of 40%, on average.
Emerson Electric has a projected earnings growth rate of 19.9% for 2021. The Zacks Consensus Estimate for EMR’s current-year earnings has been revised upward by 1% in the past 30 days.
The company’s shares have appreciated 15% in the past year. Emerson Electric has a trailing four-quarter earnings surprise of 10.7%, on average.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
See these 7 breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report