Why Apogee Shares Surged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of glass maker Apogee Enterprises (NAS: APOG) climbed 16% today, after its quarterly results and outlook easily topped Wall Street expectations.
So what: Apogee's second-quarter earnings -- EPS of $0.18 versus the consensus of just $0.09 -- and full-year outlook was so impressive that analysts have no choice but to raise their price targets, yet again. In fact, the backlog at Apogee's architectural segment now stands at $299 million, versus $229 million in the year-ago period, providing Wall Street with decent visibility into its earnings growth going forward.
Now what: Management now sees full-year EPS of $0.56 to $0.64, up nicely from its prior view of $0.48 to $0.58. According to CEO Joseph Puishys:
I believe that our focus on operational improvements, new geographies, new products and new markets will continue to deliver improving top- and bottom-line results during fiscal 2013 and beyond. Apogee has significant opportunities to grow domestically and internationally.
Of course, with the stock hitting yet another new high today, and trading at a 60+ P/E, much of that optimism might already be baked into the price.
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The article Why Apogee Shares Surged originally appeared on Fool.com.Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.