Why Apogee Enterprises Stock Is Skyrocketing Today
Key Points
Apogee Enterprises beat Wall Street's sales and earnings targets for fiscal Q1.
After accounting for the company's upcoming acquisition of Kalwell, the company's forward guidance also came in well above Wall Street's targets.
Apogee Enterprises (NASDAQ: APOG) is surging in Friday's trading, with the company's share price up 16.9% as of 1:30 p.m. ET. The S&P 500 was up 0.2% at the same point in the daily session, and the Nasdaq Composite was up 0.3%.
While sell-offs for some major chip and artificial intelligence (AI) stocks are occurring today, other industries haven't been impacted by the bearish momentum. With Apogee posting strong fiscal Q1 reports and forward guidance this morning, investors are feeling much more bullish about the stock in today's session.
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Apogee beats fiscal Q1 expectations
Before the market opened this morning, Apogee Enterprises published its results for the first quarter of its 2027 fiscal year -- a period that ended May 30. The company reported non-GAAP (adjusted) earnings of $0.57 per share on sales of $342.7 million. Earnings per share beat the average analyst estimate by $0.16, and sales for the quarter topped the average forecast by roughly $11.2 million despite still being down 1.1% year over year.
Apogee reaffirms its fiscal year targets and comments on the Kalwall acquisition
With its fiscal Q1 report, Apogee reaffirmed guidance for core sales between $1.38 billion and $1.43 billion -- with the midpoint of that target being essentially in line with the average analyst estimate's call for sales of $1.41 billion. On the other hand, the midpoint of its reiterated target for adjusted earnings per share between $2.70 and $3.25 per share this year was actually significantly better than the average Wall Street estimate's call for adjusted earnings of $2.81 per share.
On the other hand, the company's forward guidance after accounting for the upcoming closing of its acquisition of Kalwall was actually significantly better than the market's expectations. The company expects post-acquisition to be between $1.43 billion and $1.48 billion -- exceeding the consensus estimate's call for sales of $1.41 billion. Management also expects the integration of Kalwell to be accretive to earnings per share, although not enough to shift from its guidance for adjusted earnings per share between $2.70 and $3.25 for the fiscal year.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.