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Apogee (APOG) Earnings Surpass Estimates in Q4, Dip Y/Y
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Apogee Enterprises, Inc. (APOG - Free Report) reported fourth-quarter fiscal 2023 (ended Feb 25, 2023) adjusted earnings per share (EPS) of 86 cents, surpassing the Zacks Consensus Estimate of 83 cents. However, the bottom line decreased around 5% year over year.
Including one-time items, the company reported earnings per share of 91 cents against the year-ago quarter's loss of 67 cents.
Apogee generated revenues of $344.1 million in the quarter under review, up 4.9% year over year on solid growth in the Architectural Framing Systems and Architectural Glass. The top line, however, missed the Zacks Consensus Estimate of $348.7 million.
Operational Update
Cost of sales in the fiscal fourth quarter rose 13.6% year over year to $266 million. The gross profit fell 16.8% year over year to $78.1 million. The gross margin decreased to 22.7% in the quarter from the prior-year quarter's 28.6%.
The selling, general and administrative (SG&A) expenses declined 49% year over year to $52.4 million. The operating income was $25.7 million in the quarter under review against the prior-year quarter’s operating loss of $8.6 million.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
In the fiscal fourth quarter, revenues in the Architectural Framing Systems segment were up 13% year over year to $148.6 million, aided by pricing actions. The segment's operating income was $15.6 million compared with the year-ago quarter's $9.3 million.
Revenues in the Architectural Glass segment rose 12% year over year to $81.4 million, attributed to improved pricing and mix. The segment's operating profit was $9.5 million compared to $17.9 million in 2022.
Revenues in the Architectural Services segment declined 14% year over year to $98.5 million on lower volumes. The segment reported an operating income of $3.7 million against an operating loss of $41.2 million a year ago.
Revenues in the Large-Scale Optical Technologies segment rose 3% year over year to $27.2 million, driven by improved pricing. The segment reported an operating profit of $5.8 million in the fiscal fourth quarter compared with the prior-year quarter's $6.3 million.
Backlog
The Architectural Services segment's backlog was $727 million at the end of the fiscal fourth quarter compared with $741 million in the prior quarter’s end. Backlog in the Architectural Framing segment amounted to $243 million, down from $246 million at the end of third-quarter fiscal 2023.
Financial Position
Apogee had cash and cash equivalents of $19.9 million at the end of fiscal 2023 compared with $37.6 million at the end of fiscal 2022. Cash generated from operating activities was $102.7 million in fiscal 2023 compared with the prior year’s $100.5 million.
Long-term debt was $169.8 million at the end of fiscal 2023 compared with $162 million at the end of fiscal 2022. Apogee returned $94 million of cash to shareholders through share repurchases and dividend payments in fiscal 2023.
Fiscal 2023 Performance
Apogee reported adjusted EPS of $3.98 in fiscal 2023 compared with $2.48 in the prior year. Earnings beat the Zacks Consensus Estimate of $3.97. Including one-time items, the bottom line was $4.64, a notable increase from the 14 cents reported in the prior year. Sales were up 9.6% year over year to a record $1.4 billion, which was in line with the Zacks Consensus Estimate.
FY24 Guidance
Apogee expects fiscal 2024 adjusted EPS between $3.90 and $4.25. The company anticipates flat to modestly declining revenues from that reported in fiscal 2023, owing primarily to a lower volume in Architectural Services. Management projects capital expenditure between $50 million and $60 million for fiscal 2024 and a long-term average tax rate of roughly 24.5%.
Price Performance
Shares of Apogee have lost 9.3% in the past year against the industry's growth of 15%.
Encore Wire has an average trailing four-quarter earnings surprise of 146.8%. The Zacks Consensus Estimate for WIRE’s 2023 earnings is pegged at $19.76 per share. The consensus estimate for 2023 earnings has moved north by 1.7% in the past 60 days. Its shares gained 52.5% in the last year.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 72.5% in the last year.
The Zacks Consensus Estimate for Illinois Tool Works’ fiscal 2023 earnings per share is pegged at $9.53, suggesting an increase of 3.9% from that reported in the last year. The consensus estimate for fiscal 2023 earnings rose 1.3% in the last 60 days. ITW has a trailing four-quarter average earnings surprise of 0.9%. Its shares gained 18.4% in the last year.
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Apogee (APOG) Earnings Surpass Estimates in Q4, Dip Y/Y
Apogee Enterprises, Inc. (APOG - Free Report) reported fourth-quarter fiscal 2023 (ended Feb 25, 2023) adjusted earnings per share (EPS) of 86 cents, surpassing the Zacks Consensus Estimate of 83 cents. However, the bottom line decreased around 5% year over year.
Including one-time items, the company reported earnings per share of 91 cents against the year-ago quarter's loss of 67 cents.
Apogee generated revenues of $344.1 million in the quarter under review, up 4.9% year over year on solid growth in the Architectural Framing Systems and Architectural Glass. The top line, however, missed the Zacks Consensus Estimate of $348.7 million.
Operational Update
Cost of sales in the fiscal fourth quarter rose 13.6% year over year to $266 million. The gross profit fell 16.8% year over year to $78.1 million. The gross margin decreased to 22.7% in the quarter from the prior-year quarter's 28.6%.
The selling, general and administrative (SG&A) expenses declined 49% year over year to $52.4 million. The operating income was $25.7 million in the quarter under review against the prior-year quarter’s operating loss of $8.6 million.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
Apogee Enterprises, Inc. price-consensus-eps-surprise-chart | Apogee Enterprises, Inc. Quote
Segmental Performance
In the fiscal fourth quarter, revenues in the Architectural Framing Systems segment were up 13% year over year to $148.6 million, aided by pricing actions. The segment's operating income was $15.6 million compared with the year-ago quarter's $9.3 million.
Revenues in the Architectural Glass segment rose 12% year over year to $81.4 million, attributed to improved pricing and mix. The segment's operating profit was $9.5 million compared to $17.9 million in 2022.
Revenues in the Architectural Services segment declined 14% year over year to $98.5 million on lower volumes. The segment reported an operating income of $3.7 million against an operating loss of $41.2 million a year ago.
Revenues in the Large-Scale Optical Technologies segment rose 3% year over year to $27.2 million, driven by improved pricing. The segment reported an operating profit of $5.8 million in the fiscal fourth quarter compared with the prior-year quarter's $6.3 million.
Backlog
The Architectural Services segment's backlog was $727 million at the end of the fiscal fourth quarter compared with $741 million in the prior quarter’s end. Backlog in the Architectural Framing segment amounted to $243 million, down from $246 million at the end of third-quarter fiscal 2023.
Financial Position
Apogee had cash and cash equivalents of $19.9 million at the end of fiscal 2023 compared with $37.6 million at the end of fiscal 2022. Cash generated from operating activities was $102.7 million in fiscal 2023 compared with the prior year’s $100.5 million.
Long-term debt was $169.8 million at the end of fiscal 2023 compared with $162 million at the end of fiscal 2022. Apogee returned $94 million of cash to shareholders through share repurchases and dividend payments in fiscal 2023.
Fiscal 2023 Performance
Apogee reported adjusted EPS of $3.98 in fiscal 2023 compared with $2.48 in the prior year. Earnings beat the Zacks Consensus Estimate of $3.97. Including one-time items, the bottom line was $4.64, a notable increase from the 14 cents reported in the prior year. Sales were up 9.6% year over year to a record $1.4 billion, which was in line with the Zacks Consensus Estimate.
FY24 Guidance
Apogee expects fiscal 2024 adjusted EPS between $3.90 and $4.25. The company anticipates flat to modestly declining revenues from that reported in fiscal 2023, owing primarily to a lower volume in Architectural Services. Management projects capital expenditure between $50 million and $60 million for fiscal 2024 and a long-term average tax rate of roughly 24.5%.
Price Performance
Shares of Apogee have lost 9.3% in the past year against the industry's growth of 15%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Apogee currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Encore Wire Corporation (WIRE - Free Report) , OI Glass, Inc. (OI - Free Report) , and Illinois Tool Works Inc. (ITW - Free Report) . WIRE flaunts a Zacks Rank #1 (Strong Buy) at present, and OI and ITW have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Encore Wire has an average trailing four-quarter earnings surprise of 146.8%. The Zacks Consensus Estimate for WIRE’s 2023 earnings is pegged at $19.76 per share. The consensus estimate for 2023 earnings has moved north by 1.7% in the past 60 days. Its shares gained 52.5% in the last year.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 72.5% in the last year.
The Zacks Consensus Estimate for Illinois Tool Works’ fiscal 2023 earnings per share is pegged at $9.53, suggesting an increase of 3.9% from that reported in the last year. The consensus estimate for fiscal 2023 earnings rose 1.3% in the last 60 days. ITW has a trailing four-quarter average earnings surprise of 0.9%. Its shares gained 18.4% in the last year.