- Apogee Enterprises Inc (NASDAQ:APOG) reported first-quarter FY23 sales growth of 9% year-over-year to $356.6 million, beating the consensus of $328.59 million.
- Revenue by segments: Architectural Framing Systems $163.3 million (+19% Y/Y); Architectural Glass $76.3 million (-8.1% Y/Y); Architectural Services $103.4 million (+14% Y/Y); and Large-Scale Optical $25.2 million (+4% Y/Y).
- The gross margin expanded by 324 bps to 24%. The operating income improved by 107.1% Y/Y to $33.22 million, and the margin expanded by 440 bps to 9.3%.
- Apogee generated cash from operating activities of $30.5 million in Q1 versus $6.9 million a year ago. It had cash and equivalents of $15.2 million at the end of Q1.
- EPS improved to $1.00 from $0.42 in 1Q22, beating the consensus of $0.56.
- EBITDA increased by 48.9% Y/Y to $42.76 million, and margin increased by 318 bps to 12%.
- Dividend: APOG declared a quarterly cash dividend of $0.22 per share, payable on July 27, 2022, to shareholders of record at the close of business on July 12, 2022.
- Buyback: The Board also increased the existing share repurchase authorization by 1 million shares, bringing the total available share repurchase program to ~1.25 million shares.
- "While we expect continued cost inflation and supply chain challenges, we are encouraged by this start to our fiscal year. We are well-positioned to drive continued year-over-year revenue growth and margin expansion. As a result, we're increasing our guidance for full-year earnings," commented CEO Ty R. Silberhorn.
- FY23 Outlook: Apogee expects adjusted EPS of $3.50 - $3.90 (prior expectation $2.90 - $3.30) versus the consensus of $3.08.
- The company continues to expect capital expenditures of $35 million - $40 million.
- Price Action: APOG shares are trading higher by 6.94% at $40.50 during the market session on Thursday.
