MINNEAPOLIS - Apogee (NASDAQ: APOG ) Enterprises, Inc. (NASDAQ:APOG) reported better-than-expected third quarter results on Tuesday, but provided full-year guidance that fell short of analyst expectations, sending shares down 1.7% in premarket trading.
The architectural products and services company posted adjusted earnings per share of $1.19 for the quarter, surpassing the analyst consensus of $1.11. Revenue came in at $341.3 million, also beating estimates of $330.6 million and up 0.5% YoY.
However, Apogee's outlook for fiscal 2025 disappointed investors. The company now expects full-year adjusted EPS to be at the bottom of its previously provided range of $4.90 to $5.20, compared to the $5.08 analyst consensus.
"Our team remains focused on strengthening our operating foundation and positioning the company for long-term growth, despite continued pressure from soft demand in our end markets which is impacting results in the near term," said CEO Ty R. Silberhorn.
Apogee now anticipates full-year net sales to decline approximately 5%, which includes an expected $30 million contribution from its recent acquisition of UW Solutions.
The company completed the $242 million acquisition of UW Solutions, a manufacturer of high-performance coated substrates, on November 4th. Apogee expects the deal to be slightly dilutive to fiscal 2025 earnings.
For the third quarter, adjusted operating margin decreased to 10.4% from 11.1% a year ago, primarily due to lower volume and less favorable product mix.
Apogee maintained its fiscal 2025 capital expenditure forecast of $40 million to $45 million and still expects an effective tax rate of approximately 24.5%.
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