Apogee stock falls after company lowers full year forecast

Apogee Enterprises Inc. shares fell 5 percent Thursday after the company lowered its revenue guidance for the year, citing construction delays that will push some projects into fiscal 2017.

The Bloomington-based glassmaker reported that second-quarter sales rose 4 percent to $240 million and profits before taxes bolted 43 percent to $22.4 million.

Including last year's sizable tax credit, however, second-quarter earnings fell 12 percent to $14.8 million, or 50 cents a share, the company reported after markets closed Wednesday. The measure beat analysts' expectations by a penny per share.

Revenue, however, missed expectations. Analysts had predicted sales of $247 million.

Shares on Thursday closed at $54.92, down $2.94.

Officials said they still expected "a strong fiscal 2016" with revenue topping $1 billion. However, more construction delays by customers "are shifting some work from fiscal 2016 to fiscal 2017."

Apogee revised its sales growth outlook to a "high single digit." The prior forecast called for 10 to 15 percent growth. Officials retained the prior 2016 earnings guidance of $2.10 to $2.25 per share.

Backlogged orders rose 7 percent to $512 million, despite weak foreign markets. U.S. revenue rose by double digits during the quarter and backlogged orders picked up, too.

"Given the high level of backlog currently scheduled for fiscal 2017 and beyond, our visibility one year out is stronger than it has ever been," CEO Joseph Puishys said. The company benefited from improved product mix, some pricing increases and cost cutting, Puishys said.

Apogee's architectural glass division sales jumped 10 percent to $92 million. The results include Viracon, the architectural glass subsidiary in Owatonna, Minn., that made the exterior glass for the new Vikings stadium as well as for Xcel Energy Center, TCF Bank Stadium and scores of skyscrapers and offices around the world.

Architectural framing sales rose 5 percent during the quarter to $81 million, while optical technology revenue jumped 16 percent to $22.4 million.

Apogee's architectural installation services sales fell 12 percent to $52.2 million and were negatively affected by changes in project timing, officials said.