Apogee Enterprises Inc.
) is scheduled to release its fourth quarter and full year 2012
financial results on April 11, after the market closes. The Zacks
Consensus Estimate for the quarter is 7 cents per share.
The company reported a loss of 12 cents per share in the fourth
quarter of fiscal 2011. The Zacks Consensus Revenue Estimate for
the fourth quarter of fiscal 2012 is $168 million.
Third Quarter Synopsis
The company reported third quarter (ended November 26, 2011)
adjusted earnings of 20 cents per share, beating the Zacks
Consensus Estimate of 11 cents and exceeding the year-ago loss of 8
Revenues in the third quarter increased 19% year over year to
$140 million, missing the Zacks Consensus Estimate of $170
Top-line growth at Apogee, which competes with privately held
AGC Flat Glass North America, Inc., Guardian Glass Company and
Pilkington Group Limited, was driven by growth in Architectural
Products and Services revenues.
Apogee expects revenues to increase 14% in FY12, up from its
previous guidance of more than 10% year-over-year growth. The
company also expects to generate positive cash flow from
Agreement of Estimate Revisions
Out of the 3 analysts covering the stock, none have revised
their estimates for the fourth quarter in either direction over the
last 7 days or the preceding 30 days. A similar trend applies for
Magnitude of Estimate Revisions
The Zacks Consensus Estimates remained unchanged for both the
fourth quarter and fiscal 2012 over the last 7 and 30 days. Apogee
expects fiscal 2012 earnings per share of at least 7 cents. The
Zacks Consensus Estimate of 12 cents per share for fiscal 2012 is
well above the company's guidance.
Earnings Surprise History
With respect to earnings surprise, Apogee has topped the Zacks
Consensus Estimate in three of the last four quarters while it
missed the Zacks Consensus Estimate on one occasion. The company
has delivered an average positive earnings surprise of 35.61% over
the preceding four quarters, implying that it has beaten the Zacks
Consensus Estimate by that measure.
Apogee is working on increasing its market share. Future market
share gains are likely to occur in the architectural glass market,
which translate into selling greater amounts of energy-efficient
products to office, health care, education and institutional
To achieve these gains, the company is pursuing various
strategies, such as identifying attractive international markets
for architectural glass, upgrading its glass fabrication facilities
to boost production, developing new energy-efficient products and
systems for the green building trend and expanding its store front
and standard window presence.
Apogee expects to remain profitable in the fourth quarter.
However, the architectural project timing and large scale optical
seasonality are likely to affect revenues negatively, bringing it
Apogee focuses in creating solutions for the design and
development of value-added glass products, services, and systems.
The company presently has two reportable segments: the
Architectural segment and the Large-Scale Optical Technologies
Our long-term recommendation on Apogeeremains Neutral.
Currently, the stock retains a Zacks #3 Rank, implying a short-term
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