Apogee Enterprises Inc. said Thursday its first-quarter adjusted profit rose 2 percent, beating analysts’ expectations, and executives changed their full-year outlook, citing effects from recent acquisitions.
The Bloomington-based architectural glass manufacturer said its adjusted profit, which excluded one-time costs and benefits, was $26.8 million, or 62 cents a share, for the quarter ended June 3. On average, analysts had expected 59 cents per share.
Revenue was up 10 percent to $272 million.
Net profit was down 9 percent to $16.1 million, pinched by lower architectural services revenue and new product start up costs.
Architectural framing sales surged 36 percent to $110.5 million, while architectural glass sales rose 5 percent to $98 million.
Sales fell 20 percent in architectural services to $50 million and were down 7 percent in large-scale optical glass to $19 million. Those smaller business units were impacted by lower volumes, backlog growth or customer timing problems, the company said.
Apogee updated its fiscal 2018 guidance. Executives said that with the help of two recent acquisitions, Sotawall and EFCO, that annual revenue will grow 26 to 28 percent, faster than the 10 percent growth the company had initially forecast for the fiscal year.
Apogee bought Sotawall — a Canadian curtain wall maker — in December for $135 million. The business generates about $100 million in annual revenue. On June 12, Apogee completed its purchase of window maker EFCO from Pella Corp. for $195 million, adding about $250 million in fresh revenue.
Citing acquisition related costs, Apogee lowered its fiscal 2018 profit forecast to $3.31 to $3.51 per share from the prior guidance of $3.35 to $3.55. Officials said that excluding one time items, adjusted profit for the year should be in a range of $3.65 to $3.85 per share.
In a statement, CEO Joseph Puishys said he expected growth from both existing and newly acquired divisions.
Apogee shares fell 4 percent Thursday.