Apogee Q1 Profit Rises, Lifts Outlook; Shares Up

(RTTNews) - Architectural glass-products designer Apogee Enterprises Inc. (APOG), Wednesday reported a 46 percent surge in profit for the first quarter, driven largely revenue growth and stronger margins. Earnings for the quarter trumped estimates, as did revenues.

Moving ahead, the company lifted its earnings outlook for the full year, sending its shares up over 8 percent in extended hours.

Minneapolis, Minnesota-based Apogee's first-quarter profit rose to $17.7 million or $0.61 per share from $12.1 million or $0.41 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter grew 3 percent to $247.9 million from $240.0 million a year ago. Analysts had a consensus revenue estimate of $247.18 million for the quarter.

Architectural glass revenues dropped 8 percent, while architectural services were up 13 percent. Architectural framing systems gained 13 percent and Large-Scale optical technologies revenues were flat.

In the first quarter, gross margin grew by 280 basis points, while operating margin advanced 300 basis points.

"For fiscal 2017, we expect continued top- and bottom-line growth, based on our backlog, commitments and bidding activity," said CEO Joseph Puishys.

Moving ahead the company lifted its full year earnings outlook to $2.70 to $2.85 per share from $2.65 to $2.80 per share. The guidance was boosted on the basis of improved performance in the first quarter which the company expects will continue throughout the year. The company maintained its outlook for revenue growth of about 10 percent.

Analysts currently estimate earnings of $2.72 per share on revenue growth of 9.90 percent for the year.

APOG closed Wednesday's trading at $41.50, down $1.83 or 4.22%, on the NYSE. The stock, however, gained $3.50 or 8.43% in the after-hours trade.