Apogee Enterprises stock soars 13% on earnings beat and raised guidance

Investing.com -- Tuesday, Apogee Enterprises, Inc. (NASDAQ: APOG) reported second quarter results that significantly exceeded analyst expectations and raised its full-year guidance.

Shares of the architectural products provider were up 13.57% in pre-market trading following the release.

The company posted adjusted earnings per share of $1.17 for the second quarter, beating the analyst consensus of $0.63 by $0.54.

Revenue increased 9.2% YoY to $391.1 million, surpassing the estimate of $359.46 million.

The strong performance was driven by disciplined pricing, productivity initiatives, and a $16.4 million contribution from the Kalwall acquisition, partially offset by lower volume in a mixed demand environment.

Apogee raised its fiscal 2027 adjusted EPS guidance to a range of $3.00-$3.40, up from the previous range of $2.70-$3.25. The midpoint of $3.20 exceeds the analyst consensus of $2.87. The company also increased its revenue outlook to $1.46 billion-$1.50 billion from $1.38 billion-$1.43 billion, with the midpoint of $1.48 billion above the consensus of $1.43 billion.

"We are pleased with the second-quarter results which exceeded our expectations, driven by strong execution across the business," said Don Nolan, Executive Chair and Chief Executive Officer. "The momentum we established in the first half of the year, combined with our confidence in the business, supports our decision to raise full-year guidance."

Operating margin expanded 110 basis points to 8.6%, while adjusted EBITDA increased 11.7% to $49.5 million. Gross margin improved 150 basis points to 24.6%, primarily due to pricing, productivity improvements including benefits from Project Fortify 2, and the accretive impact of the Kalwall acquisition.

The company completed two strategic acquisitions during the period, adding Kalwall and Groglass to strengthen its portfolio and increase exposure to attractive end markets.

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