Apogee Enterprises Inc (NASDAQ:APOG) stock rose 0.47% (As on December 22, 11:11:18 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. Gross profit increased by 4.3% to $90.3 million and gross margin improved by 310 bps to 26.6%, primarily driven by higher pricing, improved product mix, lower short-term incentive compensation expense, and lower insurance-related expense, partially offset by the impact of lower volume and a less favorable mix of projects in Services. Selling, general and administrative expenses increased $0.8 million to 15.5% of net sales compared to 14.1%, primarily due to higher salaries and benefit costs, partially offset by lower short-term incentive compensation expense. Operating income grew 8.3% to $37.6 million, and operating margin increased 170 basis points to 11.1% primarily driven by improved segment operating margin in Architectural Glass as well as the Architectural Glass segment comprising a higher mix of the consolidated results, partially offset by lower segment operating margin in Architectural Framing Systems.

APOG in the third quarter of FY 24 has reported the adjusted earnings per share of $1.23, beating the analysts’ estimates for the adjusted earnings per share of $1.05, according to the Zacks Consensus Estimate. The company had reported 7.6 percent decline in the adjusted revenue growth to $339.71 million in the third quarter of FY 24, missing the analysts’ estimates for revenue by 5.87%.

Moreover, Architectural Framing Systems net sales were $139.6 million, compared to $165.0 million, primarily reflecting lower volume due to slowing demand in the short-cycle business, partially offset by a more favorable sales mix. Architectural Glass net sales grew 11.6%, to $91.0 million, primarily driven by improved mix and pricing, reflecting the strategic shift to emphasize premium, high-performance products. Architectural Services net sales were $94.7 million, compared to $102.0 million, primarily reflecting a less favorable mix of projects. Large-Scale Optical net sales were $26.0 million, compared to $26.7 million, primarily reflecting lower volume, partially offset by a more favorable mix and pricing.

The Company increased its outlook for full-year GAAP diluted EPS to a range of $4.71 to $4.86, and adjusted diluted EPS to a range of $4.55 to $4.70. The Company now expects net sales to decline approximately 3% compared to fiscal 2023. The Company continues to expect a long-term average tax rate of approximately 24.5% and now expects capital expenditures in fiscal 2024 between $40 to $50 million.