Benzinga | Dec 21, 2021 07:44AM EST

Apogee Enterprises Beats Q3 Estimates, Narrows FY22 EPS Outlook

* Apogee Enterprises Inc (NASDAQ:APOG) reported third-quarter revenue growth of 6.6% year-over-year to $334.22 million, beating the consensus of $314.62 million.

* Revenue by segments: Architectural Framing Systems $151.67 million (+11% Y/Y); Architectural Glass $74.29 million (-12% Y/Y); Architectural Services $91.97 million (+20% Y/Y); and Large-Scale Optical $27.35 million (+8% Y/Y).

* Adjusted EPS was $0.63, down from $0.90 in 3Q21, beating the consensus of $0.53.

* The operating income for the quarter declined 64.4% Y/Y to $17.71 million, and the margin fell 1,060 bps to 5.3%. Adjusted operating margin declined 380 bps to 6.3%.

* Adjusted EBITDA was $33.62 million, compared to $44.96 million in 3Q21, and margin contracted 428 bps to 10.1%.

* The gross profit decreased 7% Y/Y and the margin contracted by 284 bps to 19.4%.

* Apogee Enterprises generated cash from operating activities year-to-date of $86.29 million versus $120.51 million a year ago.

* The company had cash and equivalents of $78.3 million, and the total debt was $163 million at the end of the quarter.

* Architectural Framing Systems backlog increased to $419 million, compared to $406 million at Q2-end, and Architectural Services backlog of $572 million was unchanged from Q2.

* FY22 Outlook: Apogee narrowed its adjusted EPS guidance to $2.25 - $2.40 from previous range $2.20 - $2.40.

* It now expects capital expenditures of ~$25 million, down from the previous estimate of ~$35 million.

* Price Action: APOG shares closed lower by 1.01% at $42.05 on Monday.