Why Apogee Enterprises Shares Are Gaining Today

Apogee Enterprises Inc APOG reported a Q1 FY24 2023 sales growth of 1.4% Y/Y to $361.7 million, beating the consensus of $354.8 million.

Revenue by segments: Architectural Framing Systems $164.2 million (+0.5% Y/Y); Architectural Glass $97.2 million (+27.5% Y/Y), Large-Scale Optical $22.5 million (-10.8% Y/Y) and Architectural Services $89.4 million (-13.5% Y/Y).

EPS rose 5.0% Y/Y to $1.05, above the consensus of $0.90.

Gross profit increased 8.6% Y/Y to $93.0 million, and operating income grew 1.7% Y/Y to $33.8 million.

Apogee generated an operating cash flow of $21.3 million in Q1 versus cash used in operations of $(30.5) million a year ago. 

As of May 27, 2023, cash and equivalents of $24.6 million.

In Q1, Apogee returned cash worth $10.4 million to shareholders through share repurchases and dividend payments. Capital expenditures stood at $7.4 million, vs $5.1 million last year.

FY24 Outlook Raised: Apogee now expects EPS of $4.15-$4.45 (vs. $3.90-$4.25 earlier) compared to the consensus of $4.03. 

It continues to expect revenue growth to be flat to slightly decrease in FY24 due to expected lower volumes in the Architectural Services and Architectural Framing Systems segments.

The company also reiterated its capital expenditures forecast of $50 million - $60 million.

"Our first quarter results were led by exceptional performance in Architectural Glass, building on our progress over the past two years. Through executing our strategy, we've driven sustainable cost and productivity improvements, and shifted our sales mix to emphasize premium solutions that leverage our unique capabilities. These efforts are transforming Glass from an underperforming business to an economic leader that is delivering significantly improved profitability. Framing Systems and Large-Scale Optical both continue to deliver strong execution and operating margins above our targeted levels, while results in Architectural Services were below our expectations this quarter," said Ty R. Silberhorn, CEO.

Dividend: Yesterday, APOG declared a quarterly cash dividend of $0.24 per share, payable on July 27, 2023, to shareholders of record as on July 12, 2023.

Price Action: APOG shares are trading higher by 7.04% at $46.85 on the last check Friday.