Apogee Enterprises Inc (NASDAQ:APOG) stock rose 2.02% (As on Dec 22, 11:27:00 AM UTC-4, Source: Google Finance) after the company reported mixed fiscal third-quarter results against analysts’ estimates, but saw sequential growth in revenue driven by a better performance in the company’s architectural services and architectural framing systems segments. The revenue in the architectural framing systems grew 11% to $151.7 million while architectural services was up 20% to $92 million, according to the glass products manufacturer. The architectural glass segment fell to $74.3 million from $84.8 million a year ago because of lower volumes. The company had incurred an additional $3.4 million of pre-tax restructuring costs during the third quarter related to its business structure realignment plans, bringing the year-to-date total to $24.2 million. The restructuring costs reduced the company’s reported gross margin by about 100 basis points. The company had $28 million of free cash flow in the quarter.
APOG in the third quarter of FY 21 has reported the adjusted earnings per share of 63 cents, beating the analysts’ estimates for the adjusted earnings per share of 53 cents. The company had reported the adjusted revenue growth of 6.6 percent to $334.2 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $314.6 million. Services revenue reached a record $92 million in the third quarter and continued to deliver strong profitability with 10% operating margin in the quarter.
Meanwhile, the company at the end of the quarter, had completed the sale of the facility in Statesboro, Georgia. The company has also ramped up operations at the Dallas location. All production has been successfully transitioned to the flagship glass facility in Minnesota. The company is on-track to transition our Sotawall business from Framing Systems to the Services segment. The company expects this will be completed early next fiscal year.
Apogee narrowed its adjusted earnings guidance for the fiscal 2022 full year to a range of $2.25 to $2.40 per share, excluding the impact of restructuring and impairment costs, compared with $2.20 to $2.40 previously, and versus the Street forecast of $2.22 a share. The company anticipates additional pre-tax restructuring costs of $2 million to $3 million in the current fiscal quarter and full-year capital expenditures of about $25 million, down from the previous $35 million estimate, as it slowed some investments during its strategic review. The company expects cost inflation and supply chain challenges will continue in the fourth quarter.