Strength in the construction sector boosted Bloomington-based Apogee Enterprises' first-quarter earnings.
Revenue for the quarter ended June 1 rose 6 % to $355.4 million. Earnings rose nearly a half-percentage point to $15.44 million, or 58 cents a share. Adjusted for one-time items, earnings were 60 cents a share, beating estimates by 4 cents.
The company, which made the exterior building glass for U.S. Bank Stadium and the World Trade Center, saw increased demand during the quarter for its largest products — architectural glass and architectural framing systems. At the same time, revenue from its smallest division — architectural services — fell 8 %.
"We had a solid start to our fiscal year in the first quarter with good progress toward achieving our full-year goals," said CEO Joseph Puishys in a statement. "Conditions in our end-markets remain healthy, which helped us deliver another quarter of top-line growth and increased backlog."
Puishys said Apogee expects to spend $60 million to $65 million in capital expenditures this fiscal year.
It also expects full-year revenue to grow 1 to 3 % beyond the $1.4 billion achieved in fiscal 2019. Earnings per share are expected to reach $3 to $3.20.
Puishys told analysts during a conference call that strong construction trends should continue.
He noted that the U.S. economic recovery is approaching a historic 10-year stretch, but he said commercial construction represented only half that success.
"Also we're not seeing overbuilding or speculative building that might indicate top of market cycle. We continue to see a nice balance of new construction starts tied to tenant demand," he said. Plus Apogee added several "significant" architectural-services projects last quarter, which is helping to create a healthy backlog of projects.
Apogee's stock price rose 11 % to close at $43.74 a share Thursday.