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Apogee Enterprises Beats Q3 Estimates, Narrows FY22 EPS Outlook

Apogee Enterprises Beats Q3 Estimates, Narrows FY22 EPS Outlook

Apogee Enterprises Inc. APOG +0 percent announced third-quarter revenue of $334.22 million, up 6.6 percent year over year, exceeding the $314.62 million consensuses.

Architectural Framing Systems brought in $151.67 million (+11 percent Y/Y); Architectural Glass brought in $74.29 million (-12 percent Y/Y); Architectural Services brought in $91.97 million (+20 percent Y/Y), and Large-Scale Optical brought in $27.35 million (+8% Y/Y).

Adjusted EPS was $0.63, down from $0.90 in 3Q21, although it outperformed the $0.53 expectation.

Operating income plummeted 64.4 percent year over year to $17.71 million, and the margin fell 1,060 basis points to 5.3 percent. The adjusted operating margin shrank by 380 basis points to 6.3 percent.

Adjusted EBITDA was $33.62 million in 3Q22, down from $44.96 million in 3Q21, and the margin fell 428 basis points to 10.1 percent.

The gross profit fell 7% year over year, and the margin shrank by 284 basis points to 19.4 percent.

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Apogee Enterprises has earned $86.29 million in cash from operations so far this year, compared to $120.51 million a year earlier.

At the conclusion of the quarter, the company had $78.3 million in cash and equivalents and $163 million in total debt.

Architectural Framing Systems backlog climbed to $419 million from $406 million at the end of Q2, while Architectural Services backlog remained steady at $572 million.

FY22 Outlook: Apogee’s adjusted EPS projection for FY22 has been lowered to $2.25 – $2.40, down from a previous range of $2.20 – $2.40.

Capital expenditures are now expected to be $25 million, down from a previous estimate of $35 million.

Price Action: On Monday, APOG’s stock dropped 1.01 percent to $42.05 per share.

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Oladotun Olayemi

Dotun is a financial enthusiast who specializes in first-in-class financial content, including crypto, blockchain, market, and business, to educate and inform readers.