Apogee Enterprises, Inc. (NASDAQ:APOG) shares rose 22.66% in premarket trading on Tuesday after the architectural products company reported second-quarter earnings and revenue above analyst estimates and raised its fiscal 2027 guidance.
The company reported adjusted earnings per share of $1.17, compared with an analyst consensus estimate of $0.63.
Second-quarter revenue increased 9.2% from the prior-year period to $391.1 million, exceeding the consensus estimate of $359.46 million.
Apogee attributed the performance to pricing and productivity initiatives, along with a $16.4 million revenue contribution from its Kalwall acquisition. These factors were partially offset by lower volumes.
Apogee Raises Fiscal 2027 Earnings and Revenue Guidance
Apogee increased its fiscal 2027 adjusted earnings per share guidance to between $3.00 and $3.40, compared with its previous forecast of $2.70 to $3.25.
The midpoint of the new range is $3.20, compared with an analyst consensus estimate of $2.87.
The company also raised its full-year revenue forecast to between $1.46 billion and $1.50 billion from its previous range of $1.38 billion to $1.43 billion. The midpoint of the revised range, $1.48 billion, compares with a consensus estimate of $1.43 billion.
“We are pleased with the second-quarter results which exceeded our expectations, driven by strong execution across the business,” said Don Nolan, Executive Chair and Chief Executive Officer. “The momentum we established in the first half of the year, combined with our confidence in the business, supports our decision to raise full-year guidance.”
Operating and Gross Margins Increase
Apogee reported an operating margin of 8.6% for the quarter, an increase of 110 basis points.
Adjusted EBITDA rose 11.7% to $49.5 million, while gross margin increased 150 basis points to 24.6%.
The company attributed the gross margin increase primarily to pricing and productivity improvements, including benefits from Project Fortify 2, as well as the contribution from the Kalwall acquisition.
Apogee also completed the acquisitions of Kalwall and Groglass during the period, expanding its portfolio and exposure to additional end markets.