We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Apogee Q1 Earnings Beat Estimates on Pricing, Productivity Gains
Read MoreHide Full Article
Key Takeaways
Apogee's Q1 adjusted EPS of 57 cents beat estimates and rose 1.8% year over year.
APOG's revenue dipped 1.1% on lower volume, partly offset by favorable pricing and mix.
APOG reaffirmed fiscal 2027 earnings guidance and expects Kalwall to boost revenue if completed.
Apogee Enterprises, Inc. (APOG - Free Report) reported adjusted earnings of 57 cents per share for first-quarter fiscal 2027, beating the Zacks Consensus Estimate of 43 cents by 32.56%. The bottom line rose 1.8% year over year.
Including one-time items, the company reported EPS of 54 cents against the year-ago quarter's loss of 13 cents.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
Apogee generated revenues of $342.7 million in the quarter under review, down 1.1% year over year due to lower volume. This was partially offset by favorable pricing as the company passed on higher material and freight costs, along with a favorable mix. The top line beat the Zacks Consensus Estimate of $334 million. Architectural Services backlog reached $734.5 million compared with $683 million at the end of fiscal year 2026.
APOG’s Margins Reflect Mixed Cost Dynamics
Cost of sales in the fiscal first quarter decreased 1.4% year over year to $268 million. Gross profit fell 0.1% year over year to $75 million. The gross margin increased 21.9% from 21.7% in the prior-year quarter. The improvement was driven by price, productivity gains, savings from Project Fortify Phase 2 and a favorable mix, partly offset by higher material and freight costs and lower volume.
Selling, general and administrative expenses fell 17.6% year over year to $56.2 million. SG&A expenses as a percentage of sales improved 330 basis points to 16.4%, mainly due to cost savings from Fortify Phase 2.
Operating income totaled $18.8 million in the quarter under review, marking a 171.8% jump from $6.9 million in the prior-year quarter.
Apogee’s Q1 Segmental Performance
In the fiscal first quarter, revenues in the Architectural Metals segment declined 4.8% year over year to $122.4 million due to lower volume. This was partially offset by a favorable price and product mix. The segment’s adjusted EBITDA was $13.7 million compared with the year-ago quarter’s $9.4 million.
Revenues in the Architectural Glass segment fell 7.6% year over year to $67.7 million due to lower prices and volume. This was partially offset by a favorable mix. The segment’s adjusted EBITDA was $5.9 million compared with $13.4 million in the prior-year quarter.
Revenues in the Architectural Services segment improved 8.2% year over year to $115.2 million on increased volume. The segment reported adjusted EBITDA of $6.1 million, up 1.2% year over year.
Revenues in the Performance Surfaces segment rose 4.9% year over year to $44.3 million due to increased volume and favorable pricing. The segment reported adjusted EBITDA of $6.6 million in the fiscal first quarter compared with $8 million in the prior-year quarter.
APOG’s Cash Position & Balance Sheet
Apogee had cash and cash equivalents of $26.4 million at the end of first-quarter fiscal 2027 compared with $39.5 million at the end of fiscal 2026. Cash provided by operating activities totaled $7.4 million in the fiscal first quarter against cash used in operating activities of $19.8 million in the prior-year quarter.
Long-term debt was $237.4 million at the end of the first quarter of fiscal 2027, up from $232.3 million at the end of fiscal 2026. The company’s Consolidated Leverage Ratio was 1.3x at the end of the quarter.
Apogee FY27 Guidance
Excluding the pending Kalwall acquisition, APOG continues to expect fiscal 2027 net revenues of $1.38-$1.43 billion and adjusted earnings of $2.70-$3.25 per share. Assuming Kalwall closes in early July, revenues are expected to be $1.43-$1.48 billion. The acquisition is expected to be accretive to adjusted earnings but is not anticipated to materially change the fiscal 2027 adjusted earnings outlook.
For the second quarter, the company expects net revenues to be slightly lower year over year, adjusted earnings to decline and operating cash flow strength to continue.
APOG’s Stock Price Performance
Shares of the company have gained 16.8% in the past year against the industry's loss of 20.8%.
Image Source: Zacks Investment Research
Another Glass Stock’s Performance
O-I Glass, Inc. (OI - Free Report) posted first-quarter 2026 adjusted earnings of 5 cents per share, missing the Zacks Consensus Estimate of 9 cents by 44.4%. Results also fell sharply from 40 cents a year ago.
O-I Glass generated net revenues of $1.54 billion, edging down 1.7% year over year, but beating the consensus mark of $1.43 billion by 7.8%. Shipments declined 8%, with a tougher operating backdrop in Europe as energy costs increased and price competition intensified.
Apogee’s Zacks Rank & Stocks to Consider
Apogee currently has a Zacks Rank #5 (Strong Sell).
Tennant has an average trailing four-quarter earnings surprise of 40.8%. The Zacks Consensus Estimate for TNC’s 2026 earnings is pinned at $5.12 per share. The company’s shares have gained 14% in a year.
The Zacks Consensus Estimate for RBC Bearings’ fiscal 2027 earnings is pegged at $14.17 per share. The company has a trailing four-quarter average earnings surprise of 6.2%. RBC shares have gained 65% in a year.
View the Zacks #1 Rank List
Image: Zacks
Apogee Q1 Earnings Beat Estimates on Pricing, Productivity Gains
Key Takeaways
Apogee Enterprises, Inc. (APOG - Free Report) reported adjusted earnings of 57 cents per share for first-quarter fiscal 2027, beating the Zacks Consensus Estimate of 43 cents by 32.56%. The bottom line rose 1.8% year over year.
Including one-time items, the company reported EPS of 54 cents against the year-ago quarter's loss of 13 cents.
Apogee Enterprises, Inc. Price, Consensus and EPS Surprise
Apogee Enterprises, Inc. price-consensus-eps-surprise-chart | Apogee Enterprises, Inc. Quote
Apogee generated revenues of $342.7 million in the quarter under review, down 1.1% year over year due to lower volume. This was partially offset by favorable pricing as the company passed on higher material and freight costs, along with a favorable mix. The top line beat the Zacks Consensus Estimate of $334 million. Architectural Services backlog reached $734.5 million compared with $683 million at the end of fiscal year 2026.
APOG’s Margins Reflect Mixed Cost Dynamics
Cost of sales in the fiscal first quarter decreased 1.4% year over year to $268 million. Gross profit fell 0.1% year over year to $75 million. The gross margin increased 21.9% from 21.7% in the prior-year quarter. The improvement was driven by price, productivity gains, savings from Project Fortify Phase 2 and a favorable mix, partly offset by higher material and freight costs and lower volume.
Selling, general and administrative expenses fell 17.6% year over year to $56.2 million. SG&A expenses as a percentage of sales improved 330 basis points to 16.4%, mainly due to cost savings from Fortify Phase 2.
Operating income totaled $18.8 million in the quarter under review, marking a 171.8% jump from $6.9 million in the prior-year quarter.
Apogee’s Q1 Segmental Performance
In the fiscal first quarter, revenues in the Architectural Metals segment declined 4.8% year over year to $122.4 million due to lower volume. This was partially offset by a favorable price and product mix. The segment’s adjusted EBITDA was $13.7 million compared with the year-ago quarter’s $9.4 million.
Revenues in the Architectural Glass segment fell 7.6% year over year to $67.7 million due to lower prices and volume. This was partially offset by a favorable mix. The segment’s adjusted EBITDA was $5.9 million compared with $13.4 million in the prior-year quarter.
Revenues in the Architectural Services segment improved 8.2% year over year to $115.2 million on increased volume. The segment reported adjusted EBITDA of $6.1 million, up 1.2% year over year.
Revenues in the Performance Surfaces segment rose 4.9% year over year to $44.3 million due to increased volume and favorable pricing. The segment reported adjusted EBITDA of $6.6 million in the fiscal first quarter compared with $8 million in the prior-year quarter.
APOG’s Cash Position & Balance Sheet
Apogee had cash and cash equivalents of $26.4 million at the end of first-quarter fiscal 2027 compared with $39.5 million at the end of fiscal 2026. Cash provided by operating activities totaled $7.4 million in the fiscal first quarter against cash used in operating activities of $19.8 million in the prior-year quarter.
Long-term debt was $237.4 million at the end of the first quarter of fiscal 2027, up from $232.3 million at the end of fiscal 2026. The company’s Consolidated Leverage Ratio was 1.3x at the end of the quarter.
Apogee FY27 Guidance
Excluding the pending Kalwall acquisition, APOG continues to expect fiscal 2027 net revenues of $1.38-$1.43 billion and adjusted earnings of $2.70-$3.25 per share. Assuming Kalwall closes in early July, revenues are expected to be $1.43-$1.48 billion. The acquisition is expected to be accretive to adjusted earnings but is not anticipated to materially change the fiscal 2027 adjusted earnings outlook.
For the second quarter, the company expects net revenues to be slightly lower year over year, adjusted earnings to decline and operating cash flow strength to continue.
APOG’s Stock Price Performance
Shares of the company have gained 16.8% in the past year against the industry's loss of 20.8%.
Another Glass Stock’s Performance
O-I Glass, Inc. (OI - Free Report) posted first-quarter 2026 adjusted earnings of 5 cents per share, missing the Zacks Consensus Estimate of 9 cents by 44.4%. Results also fell sharply from 40 cents a year ago.
O-I Glass generated net revenues of $1.54 billion, edging down 1.7% year over year, but beating the consensus mark of $1.43 billion by 7.8%. Shipments declined 8%, with a tougher operating backdrop in Europe as energy costs increased and price competition intensified.
Apogee’s Zacks Rank & Stocks to Consider
Apogee currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Industrial Products sector are Tennant Company (TNC - Free Report) and RBC Bearings Incorporated (RBC - Free Report) . TNC sports a Zacks Rank #1 (Strong Buy) while RBC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Tennant has an average trailing four-quarter earnings surprise of 40.8%. The Zacks Consensus Estimate for TNC’s 2026 earnings is pinned at $5.12 per share. The company’s shares have gained 14% in a year.
The Zacks Consensus Estimate for RBC Bearings’ fiscal 2027 earnings is pegged at $14.17 per share. The company has a trailing four-quarter average earnings surprise of 6.2%. RBC shares have gained 65% in a year.