Apogee Profit Down, Cuts Revenue Outlook; Shares Fall 9%

(RTTNews) - Architectural glass-products designer Apogee Enterprises Inc. (APOG), Wednesday reported a smaller profit for the second quarter, hurt largely by an increase in income tax expense. Earnings for the quarter trumped estimates by a penny, but revenues fell short of Wall Street expectations.

Moving ahead, the company lowered its revenue outlook for the full year 2016, citing "construction site delays," sending its shares down over 9 percent in extended hours.

Minneapolis, Minnesota-based Apogee's second-quarter profit dropped to $14.8 million or $0.50 per share from $16.8 million or $0.57 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.49 per share for the second quarter. Analysts' estimates typically exclude one-time items.

Net sales for the second quarter grew 4 percent to $240.8 million from $231.9 million a year ago. Analysts had a consensus revenue estimate of $246.89 million for the quarter.

Architectural glass revenues jumped 10 percent, while architectural services declined 12 percent. Architectural framing systems gained 5 percent and Large-Scale optical technologies revenue jumped 16 percent.

Apogee recorded income tax expense of $7.7 million compared to a tax benefit of $1.1 million last year.

Moving ahead, the company lowered its fiscal 2016 revenue outlook to high single digit growth from its earlier forecast of 10 to 15 percent, citing construction site delays. Meanwhile, Apogee maintained its earnings outlook of $2.10 to $2.25 per share for 2016.

Analysts currently expect earnings of $2.38 per share on revenue growth of 13.6 percent for 2016.

The company also maintained its long term revenue outlook of $1.3 billion in 2018.

APOG closed Wednesday's trading at $57.86, up $0.89 or 1.56%, on the Nasdaq. The stock, however, dropped $5.36 or 9.26% in the after-hours trade.