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Apogee (APOG) Q1 Earnings: What's in Store for the Stock?
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Apogee Enterprises, Inc. (APOG - Free Report) is scheduled to release first-quarter fiscal 2017 financial results on Jun 22, 2016. Apogee had delivered a 47% rise in its earnings per share to 69 cents in fourth-quarter fiscal 2016 driven by strong margins. Let’s see how things are shaping up for this announcement.
Factors at Play
Apogee expects mid-single digit U.S. commercial construction-market growth through fiscal 2017, as market activity, the Architecture Billings Index, office employment and office vacancy rates show positive momentum. Further, its robust backlog, commitments and bidding activity will boost revenues. The company continues to focus on achieving top-line growth on the back of product launches, expansion in both domestic and international markets and entry into the new architectural markets.
Backlog at the end of fiscal 2016 was at $508.0 million, up 4% from $490.8 million in the prior-year period. Approximately, $407 million or 80% of the backlog is expected to be delivered in fiscal 2017.
However, unfavorable foreign currency impact will continue to hurt Apogee’s results in the near term. In addition, the company’s entry into the Brazilian architectural glass market exposes it to the soft economic conditions in the region as well as inherent risks associated with operations in foreign markets; including independent demand cycles, political issues, tax and other risks as well as exchange rate.
Earnings Surprise
Last quarter, the company delivered an earnings surprise of 0.00%. In the last 4 quarters, the company has beat the Zacks Consensus Estimate on 2 occasions and delivered in line results twice, with an average earnings surprise of 6.67%.
Our proven model does not conclusively show that Apogee is likely to beat estimates as it lacks the required combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Zacks ESP: Apogee’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are at 63 cents per share.
Zacks Rank: Apogee has a Zacks Rank #3 (Hold), which when combined with an Earnings ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some other companies which are worth considering as our model shows that they have the right combination elements to post an earnings beat:
Worthington Industries, Inc. (WOR - Free Report) has an Earnings ESP of +9.52% and a Zacks Rank #3.
Allegheny Technologies Inc. (ATI - Free Report) with an Earnings ESP of +45.95% carries a Zacks Rank #3.
United Technologies Corp. holds an Earnings ESP of +1.81% and a Zacks Rank #3.
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 >>
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Apogee (APOG) Q1 Earnings: What's in Store for the Stock?
Apogee Enterprises, Inc. (APOG - Free Report) is scheduled to release first-quarter fiscal 2017 financial results on Jun 22, 2016. Apogee had delivered a 47% rise in its earnings per share to 69 cents in fourth-quarter fiscal 2016 driven by strong margins. Let’s see how things are shaping up for this announcement.
Factors at Play
Apogee expects mid-single digit U.S. commercial construction-market growth through fiscal 2017, as market activity, the Architecture Billings Index, office employment and office vacancy rates show positive momentum. Further, its robust backlog, commitments and bidding activity will boost revenues. The company continues to focus on achieving top-line growth on the back of product launches, expansion in both domestic and international markets and entry into the new architectural markets.
Backlog at the end of fiscal 2016 was at $508.0 million, up 4% from $490.8 million in the prior-year period. Approximately, $407 million or 80% of the backlog is expected to be delivered in fiscal 2017.
However, unfavorable foreign currency impact will continue to hurt Apogee’s results in the near term. In addition, the company’s entry into the Brazilian architectural glass market exposes it to the soft economic conditions in the region as well as inherent risks associated with operations in foreign markets; including independent demand cycles, political issues, tax and other risks as well as exchange rate.
Earnings Surprise
Last quarter, the company delivered an earnings surprise of 0.00%. In the last 4 quarters, the company has beat the Zacks Consensus Estimate on 2 occasions and delivered in line results twice, with an average earnings surprise of 6.67%.
APOGEE ENTRPRS Price and EPS Surprise
APOGEE ENTRPRS Price and EPS Surprise | APOGEE ENTRPRS Quote
Earnings Whispers?
Our proven model does not conclusively show that Apogee is likely to beat estimates as it lacks the required combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Zacks ESP: Apogee’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are at 63 cents per share.
Zacks Rank: Apogee has a Zacks Rank #3 (Hold), which when combined with an Earnings ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some other companies which are worth considering as our model shows that they have the right combination elements to post an earnings beat:
Worthington Industries, Inc. (WOR - Free Report) has an Earnings ESP of +9.52% and a Zacks Rank #3.
Allegheny Technologies Inc. (ATI - Free Report) with an Earnings ESP of +45.95% carries a Zacks Rank #3.
United Technologies Corp. holds an Earnings ESP of +1.81% and a Zacks Rank #3.
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 >>