Apogee Enterprises Inc (NASDAQ:APOG) stock fell 0.57% (As on Apr 8, 12:27:20 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Architectural Glass revenue was down 12%, mainly driven by lower volumes. The company had fewer new project awards over the past year, while non-residential construction has been in a downturn. The company is also strategically shifting away from some low margin sales. Adjusted operating margin was 6.4%. This was 200 basis points better than last year and 340 basis points higher than third quarter. Architectural Services revenue grew 21% to a record $99 million. Operating income of $11.8 million was also record high. This was driven by strong project execution and leverage from increased volume. Services backlog declined to $518 million. This was driven by strong revenue conversion in the quarter along with lower new order volumes. Large Scale Optical revenue of $27 million grew 23% compared to last year’s fourth quarter. This was mainly driven by increased sales of high value products and margins were strong at 23.7%.

APOG in the fourth quarter of FY 22 has reported the adjusted earnings per share of 91 cents, beating the analysts’ estimates for the adjusted earnings per share of 71 cents. The company had reported the adjusted revenue growth of 6 percent to $328 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $323 million. This was led by over 20% growth in both Architectural Services and LSO segments, along with 9% growth in Framing Systems. The adjusted operating income was $27.7 million and adjusted operating margin improved to 8.4%. This was 130 basis points better than last year’s fourth quarter. The primary driver was the impact of the pricing actions especially in Framing Systems. Improved pricing fully offset the impact of inflation in the quarter. Margins also benefit from a restructuring and cost saving efforts.

For fiscal 2023, the company now projects adjusted earnings in a range of $2.90 to $3.30 per share. On average, five analysts polled by Thomson Reuters expect the company to report earnings of $2.91 per share for the year.

The company expects also revenue growth in fiscal 2023, primarily driven by growth in Architectural Framing Systems. The company forecasts full year capital expenditures to be in the range of $35 to $40 million.