Apogee's third-quarter fiscal 2015 earnings improved an impressive
42% year over year to $0.47 per share. Total revenue also increased
23% year over year to $244 million. Apogee raised the lower end of
its earnings per share projection to $1.64 $1.72 for fiscal 2015.
The company reaffirmed its revenues guidance of at least 20% growth
for 2015. Apogee is expecting strong year-over-year improvement due
to its strategies to grow through new geographies, new products and
new markets along with focus on productivity and operational
improvements. While, the macroeconomic uncertainties, political
issues and volatility in foreign exchange rates remain challenges
for Apogee. Hence, we have maintained our Neutral recommendation on
Apogee with a target price of $46.
Apogee Enterprises Inc. (APOG) is a leader in technologies for
the design and development of value-added glass products, services,
and systems. The company operates under four segments, with three
of the segments serving the commercial construction market:
The Architectural Glass segment (37% of total revenue in the
first quarter of fiscal 2015) fabricates glass used in customized
window and wall systems forming the outside skin of commercial and
institutional buildings. The segment consists of Viracon, a
fabricator of coated, high-performance architectural glass for
global markets. Its markets include the U.S. government, offices,
education, health care and hotels.
The Architectural Services segment (24%) is involved in
designing, engineering, fabricating and installing walls and
windows of glass constructing the outside skin of commercial and
institutional buildings which are being constructed or renovated.
The segment consists of Harmon, one of the largest U.S.
full-service building glass installation and renovation companies.
Architectural Services segment operates mid to smaller size complex
projects in the U.S.
The Architectural Framing Systems (30%) designs, engineers,
fabricates and finishes the aluminum frames used in customized
aluminum and glass window, curtainwall, storefront and entrance
systems structuring the outside skin and entrances of commercial
and institutional buildings with features such as energy efficiency
and hurricane protection. The segment comprises of Wausau Window
and Wall Systems, Tubelite and Linetec.
The Large-Scale Optical (LSO) segment (9%) manufactures
value-added glass and acrylic products for the picture framing
market. LSO segment consists of Tru Vue, a manufacturer of
value-added glass and acrylic for the custom picture framing and
fine art market.
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