Apogee Enterprises Reports Mixed Q2 Results, Gross Margin Shrinks

Apogee Enterprises Inc APOG reported second-quarter revenue growth of 2% year-over-year to $325.79 million, beating the consensus of $315.39 million.
Reveneu by segments: Architectural Framing Systems $149.97 million (-2% Y/Y); Architectural Glass $79.37 million (-8% Y/Y); Architectural Services $83.03 million (+13% Y/Y); and Large-Scale Optical $23.54 million (+40% Y/Y).
Adjusted EPS decreased to $0.53 from $0.73 in 2Q21, missing the consensus of $0.55.
The gross margin contracted by 911 bps to 14.7%. The company reported an operating loss of $(3.07) million, compared to an operating profit of $23.22 million a year ago.
Adjusted operating income decreased by 30.5% Y/Y to $17.75 million, and margin declined by 260 bps to 5.4%.
Adjusted EBITDA decreased by 22.4% Y/Y to $30.68 million and margin contracted by 296 bps to 9.4%.
Apogee generated cash from operating activities year-to-date of $54.91 million versus $85.33 million a year ago. It had cash and cash equivalents of $61.8 million at Q2-end.
FY22 Outlook: Apogee expects an adjusted EPS of $2.20 - $2.40 versus the consensus of $2.28.
Price Action: APOG shares closed lower by 2.40% at $39.43 on Monday.

Momentum22.57

Growth17.04

Quality70.92

Value61.96

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