Apogee Enterprises Inc (NASDAQ:APOG) stock fell 0.010% (As on September 20, 11:20:37 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24. Gross profit increased $10.4 million, or 12.3%, and gross margin increased to 27.0% compared to 22.8%. The improvement in gross margin was primarily driven by higher gross margins in both Architectural Framing Systems and Architectural Glass and the increased mix of Architectural Glass in the consolidated results. This was partially offset by lower margins in the Large-Scale Optical segment. Operating income grew 26.4% to $40.6 million, and operating margin increased 290 basis points to 11.5%, primarily driven by improved operating margin in Architectural Glass as well as the Architectural Glass segment comprising a higher mix of the consolidated results.

Moreover, Architectural Framing Systems net sales were $158.8 million, compared to $172.9 million, primarily reflecting lower volume, partially offset by a more favorable sales mix. Architectural Glass net sales grew 21.6%, to $94.1 million, primarily driven by improved pricing and mix, reflecting the strategic shift to emphasize premium, high-performance products, as well as higher volume. Architectural Services net sales were $88.1 million, compared to $106.7 million, primarily reflecting lower project volume due to a higher mix of projects in earlier stages of completion.

APOG in the second quarter of FY 24 has reported the adjusted earnings per share of $1.36, beating the analysts’ estimates for the adjusted earnings per share of $1.12. The company had reported 5 percent decline in the adjusted revenue growth to $353.68 million in the second quarter of FY 24, missing the analysts’ estimates for revenue of $372.01 million. This is primarily reflecting lower volumes in Architectural Services and Architectural Framing Systems, partially offset by strong growth in Architectural Glass.

Looking ahead, the company has provided its adjusted EPS outlook for FY24, which is expected to range between $4.35 and $4.65. This projection exceeds the analyst consensus of $4.28, and it represents an upward revision from the company’s previous EPS outlook of $4.15 to $4.45.

Apogee Enterprises anticipates flat to slightly declining net sales compared to the previous fiscal year, indicating potential challenges in the market. Further, the company expects a long-term average tax rate of approximately 24.5% and plans to allocate capital expenditures in fiscal 2024 between $50 million and $60 million