Apogee Enterprises (APOG) Up 9% Since Last Earnings Report: Can It Continue?

Apogee Enterprises (APOG) Up 9% Since Last Earnings Report: Can It Continue?

A month has passed by for the reason that final earnings report for Apogee Enterprises (APOG). Shares have added about 9% in that timeframe, outperforming the S&P 500.

Will the current optimistic development proceed main as much as its subsequent earnings launch, or is Apogee Enterprises due for a pullback? Before we dive into how buyers and analysts have reacted as of late, let’s take a fast have a look at the latest earnings report with a view to get a greater deal with on the necessary catalysts.

Apogee’s Earnings Surpass Estimates In Q2, Up Y/Y

Apogee reported second-quarter fiscal 2021 (ended Aug 29, 2020) adjusted earnings per share of 73 cents, surpassing the Zacks Consensus Estimate of 34 cents. The firm had reported adjusted earnings of 72 cents per share within the prior-year quarter.

Including one-time objects, the corporate delivered earnings per share of 67 cents in contrast with the 72 cents recorded within the year-ago quarter.

Apogee generated revenues of $319 million in the course of the quarter, marking a year-over-year decline of 11% on decrease volumes throughout the entire firm’s segments because of the coronavirus pandemic.

Operational Update

Cost of gross sales within the fiscal second quarter was down 10% yr over yr to $243 million. Gross revenue declined 12% yr over yr to $76 million. Gross margin got here in at 24%, flat yr over yr.

Selling, basic and administrative (SG&A) bills decreased 10% yr over yr to $53 million. Adjusted working revenue was down 7% yr over yr to $26 million. Operating margin within the reported quarter was 8.2% in contrast with the prior-year quarter’s 7.8%.

Segment Performance

In the fiscal second quarter, revenues within the Architectural Framing Systems section slid 18% yr over yr to $153 million on decrease order quantity and COVID-19-related challenge delays. The section’s working revenue dipped 25% yr over yr to round $12 million.

Revenues within the Architectural Glass Systems section dropped 13% yr on yr to $87 million, reflecting dismal volumes because of the pandemic-induced challenge delays in addition to decrease order quantity. The section reported an working revenue of $5 million in contrast with the year-ago quarter’s $6.5 million. This decline resulted from decrease quantity, partly offset by sturdy manufacturing facility productiveness and efficient value administration.

Revenues within the Architectural Services section elevated 20% yr over yr to $74 million, because the section executed initiatives in its substantial backlog. The section’s working revenue jumped 65% yr over yr to $6.6 million on stable sturdy challenge execution and prudent value administration.

Revenues within the Large-Scale Optical Technologies section declined 19% yr over yr to $17 million on decrease volumes. By the tip of the fiscal second quarter, the section’s clients had largely reopened, after being closed for many of the fiscal first quarter attributable to pandemic-related restrictions. In addition, the section’s two major manufacturing places resumed operations in the course of the quarter, after being shut for many of the fiscal first and second quarters. The section reported an working revenue of $2 million within the fiscal second quarter in contrast with the prior-year quarter’s $5 million, reflecting decrease quantity.

Backlog

The Architectural Services section’s backlog decreased to $665 million in contrast with the document degree of $685 million seen within the final quarter. Backlog within the Architectural Framing section amounted to $404 million, down 4.5% from the prior quarter.

Financial Position

Apogee had money and money equivalents of $19 million on the finish of the fiscal second quarter in contrast with the $19.Four million witnessed on the finish of prior-year quarter. Cash generated from working actions had been $85 million within the six-month interval ended as of Aug 29, 2020 in contrast with the year-ago quarter’s $18 million. Long-term debt was round $16 million as of Aug 29, 2020 in contrast with $213 million as of Feb 29, 2020. Over the previous yr, Apogee has lowered its complete debt by $105 million.

Fiscal yr to this point, Apogee has returned $14.5 million of money to shareholders by way of dividend funds and repurchases.

Fiscal 2021 Guidance

Given the coronavirus pandemic-related uncertainties ultimately markets and economic system, Apogee has not issued any monetary steering for fiscal 2021. Despite continued challenge delays and comfortable market situations, the corporate anticipates improved revenues and earnings within the second half of fiscal 2021 in contrast with the primary half of the fiscal yr.

How Have Estimates Been Moving Since Then?

Analysts had been quiet over the last two month interval as none of them issued any earnings estimate revisions.

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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.

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