Architectural-glass maker Apogee Enterprises reported a drop in its net income for the second quarter but its CEO said he is confident that its plan of diversifying products will produce results in the long run.
Still, the Bloomington-based maker of building glass that shrouds skyscrapers, stadiums and towers worldwide more than met Wall Street expectations, and its stock closed Tuesday up more than 11% to $45.92.
"Looking forward, we remain confident that our strategy to diversify revenue streams, broaden our growth opportunities, and improve the efficiency and productivity of our operations positions the company well for future earnings growth and more consistent operating performance," said CEO Joseph Puishys in a statement.
He said results met the company's expectations as well.
Apogee reported sales slipped 1% to $357 million, while net profits fell 6% to $19.3 million, or 72 cents a share, for the quarter ending Aug. 31.
That soundly beat analysts' average forecast for 64 cents a share and $353 million in revenue.
Puishys noted that Apogee "made substantial progress" toward completing the last integration and cost-reduction projects associated with its 2017 purchase of the EFCO aluminum window and curtain-wall division from Pella for $195 million.
Apogee's largest business, architectural framing systems, saw sales slide 1% to $187 million during the quarter, while margins were squeezed. Project timing and lower-volume issues caused the architectural services unit's sales to plunge 19% to $62 million during the quarter.
However, its architectural-glass business saw sales grow 13% to $99 million during the quarter amid volume and mix improvements.
Apogee reaffirmed its guidance for fiscal 2020, saying full-year revenue should rise 1% to 3% while earnings are expected to reach $3 to $3.20 per share, excluding EFCO charges.