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Apogee (APOG) Earnings Surpass Estimates in Q4, Rise Y/Y
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Apogee Enterprises, Inc. (APOG - Free Report) reported fourth-quarter fiscal 2022 (ended Feb 26, 2022) adjusted earnings per share (EPS) of 91 cents, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line increased 44% year over year.
Including one-time items, the company reported a loss per share of 67 cents compared with the year-ago quarter's loss of $1.65 per share.
Apogee generated revenues of $328 million in the quarter under review, up 6% year over year on solid growth in the Architectural Framing Systems and Architectural Services.
Operational Update
Cost of sales in the fiscal fourth quarter fell 2% year over year to $234 million. Gross profit increased 35% year over year to $94 million. The gross margin expanded to 28.6% in the quarter from the prior-year quarter's 22.5%.
Selling, general and administrative (SG&A) expenses declined 17% year over year to $102 million. The adjusted operating income rose 26% year over year to $28 million. The operating margin in the reported quarter was 8.4% compared with the prior-year quarter's 7.1%.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
In the fiscal fourth quarter, revenues in the Architectural Framing Systems segment were up 9% year over year to $143 million, aided by pricing actions. The segment's adjusted operating profit was $5.4 million compared with the year-ago quarter's $3.5 million.
Revenues in the Architectural Glass segment declined 12% year over year to $73 million on lower volumes. The segment reported an adjusted operating income of $4.7 million, up 31% year over year.
Revenues in the Architectural Services segment rose 21% year over year to a record $99 million, attributed to higher volumes from project executions. The segment's operating profit increased 10% year over year to $12 million.
Revenues in the Large-Scale Optical Technologies segment rose 23% year over year to $27 million, driven by a favorable sales mix. The segment reported an adjusted operating profit of $6.3 million in the fiscal fourth quarter compared with the prior-year quarter's $6 million.
Backlog
The Architectural Services segment's backlog came in at $518 million at the end of the fiscal fourth quarter compared with the prior quarter’s end of $572 million. Backlog in the Architectural Framing segment amounted to $429 million, up from $419 million at the end of third-quarter fiscal 2022.
Financial Position
Apogee had cash and cash equivalents of $37.6 million at the end of fourth-quarter fiscal 2022 compared with $47 million at the end of fiscal 2021. Cash generated from operating activities was $100 million in fiscal 2022 compared with the prior-fiscal year’s $142 million.
Long-term debt was $162 million at the end of fiscal 2022 compared with $163 million at the fiscal 2021-end.
Apogee has returned $120.7 million of cash to shareholders through share repurchases and dividend payments in fiscal 2022.
Fiscal 2022 Performance
Apogee reported adjusted EPS of $2.48 in fiscal 2022 compared with $2.40 reported in the prior fiscal. Earnings beat the Zacks Consensus Estimate of $2.32. Including one-time items, the bottom line came in at 14 cents, down 76% from 59 cents reported in fiscal 2021. Sales were up 7% year over year to $1.3 billion.
Fiscal 2023 Guidance
Apogee expects fiscal 2023 adjusted EPS between $2.90 and $3.30. The company anticipates revenue growth to be primarily driven by Architectural Framing Systems in fiscal 2023. Management projects capital expenditures between $35 million and $40 million for fiscal 2023.
Price Performance
Shares of Apogee have gained 14.9% in the past six months against the industry's decline of 18.3%.
AGCO Corp has an estimated earnings growth rate of around 12% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 10.6%.
AGCO pulled off a trailing four-quarter earnings surprise of 56.6%, on average. In the past six months, the company’s shares have gained 8.8%.
Packaging Corp has an expected earnings growth rate of 12.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 9.5% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 22.7%, on average. PKG’s shares have gained 9.9% in the past six months.
Deere has a projected earnings growth rate of 19.7% for the current fiscal. The Zacks Consensus Estimate for fiscal 2022 earnings has moved north by 2.3% in the past 60 days.
DE delivered a trailing four-quarter earnings surprise of 20.6%, on average. Deere has moved up 23.1% in the past six months.
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Apogee (APOG) Earnings Surpass Estimates in Q4, Rise Y/Y
Apogee Enterprises, Inc. (APOG - Free Report) reported fourth-quarter fiscal 2022 (ended Feb 26, 2022) adjusted earnings per share (EPS) of 91 cents, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line increased 44% year over year.
Including one-time items, the company reported a loss per share of 67 cents compared with the year-ago quarter's loss of $1.65 per share.
Apogee generated revenues of $328 million in the quarter under review, up 6% year over year on solid growth in the Architectural Framing Systems and Architectural Services.
Operational Update
Cost of sales in the fiscal fourth quarter fell 2% year over year to $234 million. Gross profit increased 35% year over year to $94 million. The gross margin expanded to 28.6% in the quarter from the prior-year quarter's 22.5%.
Selling, general and administrative (SG&A) expenses declined 17% year over year to $102 million. The adjusted operating income rose 26% year over year to $28 million. The operating margin in the reported quarter was 8.4% compared with the prior-year quarter's 7.1%.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
Apogee Enterprises, Inc. price-consensus-eps-surprise-chart | Apogee Enterprises, Inc. Quote
Segment Performance
In the fiscal fourth quarter, revenues in the Architectural Framing Systems segment were up 9% year over year to $143 million, aided by pricing actions. The segment's adjusted operating profit was $5.4 million compared with the year-ago quarter's $3.5 million.
Revenues in the Architectural Glass segment declined 12% year over year to $73 million on lower volumes. The segment reported an adjusted operating income of $4.7 million, up 31% year over year.
Revenues in the Architectural Services segment rose 21% year over year to a record $99 million, attributed to higher volumes from project executions. The segment's operating profit increased 10% year over year to $12 million.
Revenues in the Large-Scale Optical Technologies segment rose 23% year over year to $27 million, driven by a favorable sales mix. The segment reported an adjusted operating profit of $6.3 million in the fiscal fourth quarter compared with the prior-year quarter's $6 million.
Backlog
The Architectural Services segment's backlog came in at $518 million at the end of the fiscal fourth quarter compared with the prior quarter’s end of $572 million. Backlog in the Architectural Framing segment amounted to $429 million, up from $419 million at the end of third-quarter fiscal 2022.
Financial Position
Apogee had cash and cash equivalents of $37.6 million at the end of fourth-quarter fiscal 2022 compared with $47 million at the end of fiscal 2021. Cash generated from operating activities was $100 million in fiscal 2022 compared with the prior-fiscal year’s $142 million.
Long-term debt was $162 million at the end of fiscal 2022 compared with $163 million at the fiscal 2021-end.
Apogee has returned $120.7 million of cash to shareholders through share repurchases and dividend payments in fiscal 2022.
Fiscal 2022 Performance
Apogee reported adjusted EPS of $2.48 in fiscal 2022 compared with $2.40 reported in the prior fiscal. Earnings beat the Zacks Consensus Estimate of $2.32. Including one-time items, the bottom line came in at 14 cents, down 76% from 59 cents reported in fiscal 2021. Sales were up 7% year over year to $1.3 billion.
Fiscal 2023 Guidance
Apogee expects fiscal 2023 adjusted EPS between $2.90 and $3.30. The company anticipates revenue growth to be primarily driven by Architectural Framing Systems in fiscal 2023. Management projects capital expenditures between $35 million and $40 million for fiscal 2023.
Price Performance
Shares of Apogee have gained 14.9% in the past six months against the industry's decline of 18.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Apogee currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are AGCO Corporation (AGCO - Free Report) , Packaging Corporation of America (PKG - Free Report) and Deere and Company (DE - Free Report) , each carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AGCO Corp has an estimated earnings growth rate of around 12% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 10.6%.
AGCO pulled off a trailing four-quarter earnings surprise of 56.6%, on average. In the past six months, the company’s shares have gained 8.8%.
Packaging Corp has an expected earnings growth rate of 12.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 9.5% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 22.7%, on average. PKG’s shares have gained 9.9% in the past six months.
Deere has a projected earnings growth rate of 19.7% for the current fiscal. The Zacks Consensus Estimate for fiscal 2022 earnings has moved north by 2.3% in the past 60 days.
DE delivered a trailing four-quarter earnings surprise of 20.6%, on average. Deere has moved up 23.1% in the past six months.