Apogee Enterprises Q3 outcomes beat estimates, however steering disappoints

MINNEAPOLIS – Apogee (NASDAQ:APOG) Enterprises, Inc. (NASDAQ:APOG) reported better-than-expected third quarter outcomes on Tuesday, however offered full-year steering that fell wanting analyst expectations, sending shares down 1.7% in premarket buying and selling.

The architectural services firm posted adjusted earnings per share of $1.19 for the quarter, surpassing the analyst consensus of $1.11. Income got here in at $341.3 million, additionally beating estimates of $330.6 million and up 0.5% YoY.

Nonetheless, Apogee’s outlook for fiscal 2025 disenchanted traders. The corporate now expects full-year adjusted EPS to be on the backside of its beforehand offered vary of $4.90 to $5.20, in comparison with the $5.08 analyst consensus.

“Our staff stays targeted on strengthening our working basis and positioning the corporate for long-term development, regardless of continued strain from mushy demand in our finish markets which is impacting leads to the close to time period,” mentioned CEO Ty R. Silberhorn.

Apogee now anticipates full-year web gross sales to say no roughly 5%, which incorporates an anticipated $30 million contribution from its latest acquisition of UW Options.

The corporate accomplished the $242 million acquisition of UW Options, a producer of high-performance coated substrates, on November 4th. Apogee expects the deal to be barely dilutive to fiscal 2025 earnings.

For the third quarter, adjusted working margin decreased to 10.4% from 11.1% a 12 months in the past, primarily as a consequence of decrease quantity and fewer favorable product combine.

Apogee maintained its fiscal 2025 capital expenditure forecast of $40 million to $45 million and nonetheless expects an efficient tax price of roughly 24.5%.

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