Apogee Enterprises Q3 Earnings and Strategic Outlook

Apogee Enterprises Inc. posted third-quarter sales of $341.3 million, slightly above analyst expectations, largely due to its acquisition of UW Solutions, though the company is facing soft demand in its end markets. Despite beating revenue estimates, the company's earnings per share declined to $0.96 from $1.23 year-over-year, with adjusted EPS at $1.19, surpassing the $1.10 expected by FactSet. Apogee's operating margin decreased to 8.4% from 11.1% due to acquisition-related expenses and restructuring costs, while its full-year sales are now expected to decline by about 5%. The company remains focused on long-term growth, despite ongoing market pressures, and foresees full-year adjusted earnings per share at the lower end of its guidance range of $4.90 to $5.20. Furthermore, Apogee's backlog in the Architectural Services segment fell to $742.2 million, signaling potential future challenges. Nonetheless, Apogee's strategic acquisitions are aimed at expanding market opportunities and enhancing its long-term growth prospects.