Apogee Tops Q1 Earnings Estimates, Hikes FY25 View

Apogee Enterprises, Inc. APOG reported earnings per share of $1.44 in first-quarter fiscal 2025 (ended Jun 1, 2024), surpassing the Zacks Consensus Estimate of $1.16. The bottom line increased 37.1% year over year.

Apogee generated revenues of $331.5 million in the quarter under review, down 8.3% year over year due to lower volume.

Operational Update

Cost of sales in the fiscal first quarter fell 13.4% year over year to $233 million. Gross profit increased 6.3% year over year to $99 million. The gross margin expanded to 29.8% in the quarter from the prior-year quarter's 25.7%.
Selling, general and administrative expenses decreased 2.9% year over year to $57 million. The operating income rose 22.5% year over year to $41 million.

Segment Performances

In the fiscal first quarter, revenues in the Architectural Framing Systems segment fell 18.9% year over year to $133 million due to lower end-market demand. The segment's operating profit was $18.4 million compared with the year-ago quarter's $19.9 million. The impacts of lower volumes were partially offset by favorable material costs, favorable mix and productivity gains.
Revenues in the Architectural Glass segment decreased 10.8% year over year to $87 million due to lower end-market demand. This was partially offset by improved pricing. The segment reported an operating income of $17 million, up 3.5% year over year.
Revenues in the Architectural Services segment improved 10.7% year over year to $99 million, owing to higher volumes and a favorable mix of projects. The segment reported an operating profit of $5.6 million against an operating loss of $0.6 million in the year-ago quarter.
Revenues in the Large-Scale Optical Technologies segment were down 5.8% year over year to $21 million, driven by lower volume. The segment reported an operating profit of $4.8 million in the fiscal first quarter compared with the prior-year quarter's $5.5 million.

Backlog

The Architectural Services segment's backlog came in at $867 million at the end of the fiscal first quarter compared with $808 million at the end of the prior quarter.

Financial Position

Apogee had cash and cash equivalents of $30 million at the end of first-quarter fiscal 2025 compared with $37 million at the end of fiscal 2024. Cash provided by operating activities was $5.5 million in the fiscal first quarter compared with the prior-year quarter's $21.3 million.
The long-term debt was $77 million at the end of the fiscal first quarter compared with $62 million at the fiscal 2024-end.   

FY25 Guidance

Apogee expects fiscal 2025 adjusted EPS between $4.65 and $5.00, up from the previously disclosed $4.35-$4.75. The company anticipates revenues to decline 4-7% from the fiscal 2024 reported figure. Management projects capital expenditure between $40 million and $50 million for fiscal 2025, and a long-term average tax rate of 24.5%.

Price Performance

Shares of Apogee have gained 37.1% in the past year against the industry's fall of 38.9%.

Zacks Rank

Apogee currently carries a Zacks Rank #3 (Hold).

Glass Product Stock Awaiting Results

O-I Glass, Inc. OI is expected to release its second-quarter 2024 results soon. The Zacks Consensus Estimate for the company's earnings per share is pegged at 41 cents for the second quarter, suggesting a decline of 53.4% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $1.8 billion, indicating a year-over-year decrease of 7.2%.

Industrial Product Stocks Awaiting Results

Applied Industrial Technologies AIT is expected to release its second-quarter 2024 results soon.

The Zacks Consensus Estimate for the company's earnings per share is pegged at $2.52 for the second quarter, suggesting an improvement of 7.23% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $1.2 billion, indicating a year-over-year increase of 2.4%.
Cintas Corporation CTAS is expected to release its second-quarter 2024 results soon. The Zacks Consensus Estimate for Cintas' 2024 earnings is pegged at $3.80 per share, indicating year-over-year growth of 14.1%. The Zacks Consensus Estimate for total revenues is pinned at $2.5 billion, implying a year-over-year rise of 7.9%.

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