Apogee Enterprises, Inc. (APOG) Misses Q4 EPS by 2c, Offers Outlook

April 10, 2013 4:32 PM EDT
Apogee Enterprises, Inc. (NASDAQ: APOG) reported Q4 EPS of $0.15, $0.02 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $179.7 million versus the consensus estimate of $179.96 million.

Apogee Enterprises, Inc. sees FY2014 EPS of $0.90-1.00, versus the consensus of $0.96.

OUTLOOK: We expect to drive strong top- and bottom-line improvement in fiscal 2014 as we continue to implement growth and productivity initiatives,” said Puishys. “We anticipate revenue growth in the high single digits and earnings from continuing operations of $0.90 to $1.00 per share.

“Revenue growth should largely come from domestic geographic growth and new products, and our earnings should benefit from strong architectural glass pricing and mix and improving installation margins, as both businesses execute more complex, private projects,” he said. “In addition, Apogee expects to gain 50 to 100 basis points of further margin improvement from our productivity initiatives.

“We are experiencing stronger bidding activity for future work, and margins on new orders are improving,” Puishys said. “The outlook for U.S. commercial construction markets in fiscal 2014, based on Apogee’s lag to McGraw-Hill forecasts for the segments we serve, is for low single-digit market growth. We again expect to outperform market growth by several percentage points.

“Capital spending for fiscal 2014 is expected to be in the range of $40 to $45 million as we continue to invest for growth, productivity and product development capabilities, including for the new architectural glass coater,” he said. “We expect to be free cash flow positive after these investments.” He added that the fiscal 2014 gross margin is anticipated to be at least 22 percent.

“I believe that our strategies to grow through new geographies, new products and new markets will allow Apogee to reach $1 billion in revenues by the end of fiscal 2016,” Puishys said. “At the same time, we believe we can achieve 10 percent operating margin in this timeframe, in part through our focus on productivity and operational improvements.”

For earnings history and earnings-related data on Apogee Enterprises, Inc. (APOG) click here.


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