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Bear Of The Day: Apogee Enterprises (APOG)

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Apogee Enterprises (APOG - Free Report) recently beat the Zacks Consensus Estimate but the company guided FY19 below the consensus for the year.  What followed was a host of negative earnings estimate revisions and that pushed this stock down to a Zacks Rank #5 (Strong Sell) and today it is the Bear Of The Day.

Description

Apogee Enterprises makes glass products and services in the United States, Canada, and Brazil.  Apogee Enterprises, Inc. was founded in 1949 and is headquartered in Minneapolis, Minnesota.

Guidance

On April 12, the company reported EPS of $0.96 and that was well ahead of the Wall Street estimate of $0.76.  Revenues of $353M were below the estimate of $363M.

Wall Street did not like the guidance for FY 19, as the company said that they expect $3.43-$3.63 in EPS when the consensus was calling for $3.89.

This set off a chain of negative earnings estimate revisions and that pushed the stock the lowest Zacks Rank #5 (Strong Sell).

Estimate Revisions

30 Days ago, the Zacks Consensus Estimate was sitting at $0.74.  Following the report, the number has slipped to $0.44.  That is a big move lower.

Next quarter also saw estimates slip to $0.76 from the previous level of $0.87.

Negative estimate revisions are the core reason for the move to a Zacks Rank #5 (Strong Sell).

There Is Hope

Engage Capital disclosed a 6% active position in the stock on April 17 and there were rumors that Elliot planned to take a stake in the stock too. 

These two activist investors helped support the stock as it dropped following the report.  Other activists like Jana Partners helped push sales of big investments like Whole Foods which was sold to Amazon.

Chart

Apogee Enterprises, Inc. Price and Consensus

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