Overview

• US architectural products maker's fiscal Q4 net sales rose 1.6%, beating analyst expectations

• Adjusted diluted EPS beat analysts' consensus

• Sales growth driven by favorable price and mix, partially offset by lower volume

Outlook

• Apogee Enterprises expects fiscal 2027 net sales between $1.38 bln and $1.43 bln

• Company sees fiscal 2027 adjusted diluted EPS in the range of $2.70 to $3.25

• Apogee expects capital expenditures of $35 mln to $40 mln for fiscal 2027

Result Drivers

• PRICE AND MIX - Co said Q4 sales growth was driven by favorable price and mix, partially offset by lower volume

• PRODUCTIVITY IMPROVEMENTS - Co attributed the 80 bps jump in gross margin to productivity improvements, cost savings from Project Fortify 2, and lower risk-related insurance expenses

• COST MANAGEMENT - Lower incentive compensation and cost savings from Fortify Phase 2 supported adjusted EBITDA margin, partially offset by higher aluminum and health insurance costs

Company press release: ID:nBw9LR3bya

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$351.35 mln	$335.82 mln (3 Analysts)
Q4 Adjusted EPS	Beat	$0.92	$0.88 (3 Analysts)
Q4 EPS		$0.78
Q4 Net Income		$16.62 mln

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Apogee Enterprises Inc is $40.00, about 12.4% above its April 23 closing price of $35.59

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

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