Apogee Hikes Dividend - Analyst Blog


Apogee Enterprises, Inc. ( APOG ) raised its quarterly dividend by 10.4% to 9 cents per share. The increased dividend will be paid on June 1, 2012, to stockholders of record as on May 17, 2012.

The dividend hike came after a long time. Apogee last adjusted its dividend in November, 2008, benefiting its shareholders with a 22% rise. Since then Apogee has meticulously maintained a dividend payout of $0.0815 per share.

The news provided an impetus to the stock, as the share price of Apogee rose 5.3% to close at $15.38 on Friday. The dividend yield based on the new payout and the last closing market price is 0.6%.

As of March 3, 2012, Apogee had cash and short-term investments of $79.3 million compared with $46.4 million in the year-ago quarter. Cash inflow from operations amounted to $27,981 million during fiscal 2012 versus cash outflow of $7,985 million in fiscal 2011.

Apogee's fourth-quarter 2012 earnings were 11 cents per share compared with a loss of 12 cents in the year-ago quarter, comfortably surpassing the Zacks Consensus Estimate of 7 cents per share. Revenues increased 14% to $168.7 million in the quarter.

For fiscal 2013, the company expects earnings in the range of 40-50 cents per share.  The guidance is in line with the current Zacks Consensus Estimate of 50 cents. It expects to generate positive free cash flow after spending nearly $25 million in certain investments related to the introduction of new products, productivity improvements and maintenance requirements.

Apogee has a strong architectural backlog to start with in the fiscal 2013. It has plans to invest in new products to boost its product portfolio. In addition, the company plans to invest on capacity and productivity improvements.

The company faces competition from privately held AGC Flat Glass North America, Inc., Guardian Glass Company and Pilkington Group Limited.

Currently, we have a long-term Neutral recommendation on the Apogee. The stock retains a Zacks #4 Rank ("Sell" rating).

APOGEE ENTRPRS ( APOG ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: APOG



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