Apogee Enterprises, Inc. APOG reported record adjusted earnings per share (EPS) of $1.44 for second-quarter fiscal 2025 (ended Aug. 31, 2024), surpassing the Zacks Consensus Estimate of $1.20 per share. The bottom line increased 5.9% from the prior-year quarter.

Including one-time items, earnings in the quarter under review were $1.40 per share compared with $1.52 in the prior-year quarter.

Apogee generated revenues of $342 million in the quarter under review, down 3.2% from the year-ago quarter. This was mainly due to lower volumes, which was partially offset by pricing and mix.

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Apogee’s Q2 Margins Rise Y/Y

Cost of sales in the fiscal second quarter moved down 5.1% from the prior-year quarter to $245 million. The gross profit increased 2% from the prior-year quarter to $97 million. The gross margin expanded to 28.4% in the quarter under review from the prior-year quarter's 27%.

Selling, general and administrative (SG&A) expenses moved up 1% from the prior-year quarter to $55 million. The operating income rose 3.5% from the year-earlier quarter to $41.9 million. The operating margin in the reported quarter was 12.3% compared with the prior-year quarter's 11.5%.

APOG’s Segmental Performance in Q2

In the fiscal second quarter, revenues in the Architectural Framing Systems segment were down 11% from the prior-year quarter to $141 million. The segment's adjusted operating profit was $17 million compared with the year-ago quarter's $21 million. The downside was due to lower volume and a less favorable mix, partially offset by favorable material costs.

Revenues in the Architectural Glass segment fell 4.2% from the prior-year quarter to $90 million. The downside was led by lower end-market demand, and partially offset by pricing and product mix. The segment reported operating income of $21 million, up from $17 million in the second quarter of fiscal 2024. 

Revenues in the Architectural Services segment grew 11.3% from the prior-year quarter to $98 million due to higher volumes and a favorable mix. The segment's operating profit improved 74.2% from the prior-year quarter to $6.1 million. 

Revenues in the Large-Scale Optical Technologies segment were down 16.1% from the prior-year quarter to $19.8 million, led by lower volumes. The segment posted an operating profit of $3.8 million in the fiscal second quarter compared with the prior-year quarter's $4.7 million.

Apogee’s Backlog Dips in Q2

The Architectural Services segment's backlog came in at $792 million at the end of the fiscal second quarter compared with $867 million at the end of the prior quarter.

APOG’s Cash Position & Balance Sheet

Apogee had cash and cash equivalents of $51 million at the end of second-quarter fiscal 2025 compared with $37 million at the end of fiscal 2024. Cash provided by operating activities was $58.7 million in the quarter compared with the prior-year quarter’s $41.3 million.

Long-term debt was $62 million at the end of second-quarter fiscal 2025, unchanged from the end of fiscal 2023.    

The company returned $25.9 million in cash to its shareholders in the first half of fiscal 2025 through dividend payments and share repurchases.

Apogee Raises FY25 EPS Guidance

APOG expects fiscal 2025 adjusted EPS between $4.81 and $5.08, up from the previously disclosed $4.65-$5.00. 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%.

APOG Share Price Outperforms Industry

Shares of Apogee have surged 86% in the past year compared with the industry's growth of 13.3%.

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Apogee’s Zacks Rank & Glass Product Stock Awaiting Results

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

O-I Glass, Inc. OI is expected to release its third-quarter 2024 results on Oct. 29, 2024. The Zacks Consensus Estimate for the company’s earnings per share is pegged at 4 cents for the second quarter, suggesting a decline of 95% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $1.8 billion, indicating a year-over-year increase of 2.4%.

Industrial Product Stocks Awaiting Results

Crane Company CR is scheduled to release its third-quarter 2024 results on Oct. 28.

The Zacks Consensus Estimate for the company’s earnings per share is pegged at $1.31 for the third quarter, suggesting an improvement of 27.2% from the year-ago reported figure. The Zacks Consensus Estimate for CR’s total revenues is pinned at $593 million, indicating a year-over-year increase of 12.1%.

RBC Bearings Incorporated RBC is expected to release its second-quarter fiscal 2025 results soon. The Zacks Consensus Estimate for RBC’s second 2025 earnings is pegged at $2.30 per share, indicating year-over-year growth of 5.9%. The Zacks Consensus Estimate for total revenues is pinned at $401 million, implying a year-over-year rise of 4%.

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