Why Apogee Enterprises Stock Cracked Today

Core Viewpoint - Apogee Enterprises' stock experienced a significant decline of 13.7% after reporting Q3 2026 earnings that missed sales expectations despite slightly exceeding earnings per share forecasts [1][3]. Financial Performance - Apogee reported earnings of $0.77 per share under GAAP, which is 20% lower than the previous year's earnings, despite a 2% year-over-year sales growth [3]. - The company's sales totaled $348.6 million, falling short of the anticipated $355.3 million [1][3]. - The CEO attributed the disappointing results to increased costs related to aluminum, restructuring, and health insurance [3]. Segment Performance - Revenue growth was noted in architectural services and glass sales, while the architectural metals segment saw a 10% decline in sales [3]. - The performance surfaces segment, which includes coated glass and acrylics, experienced a notable 60% increase in sales, reaching $53 million [3]. Future Guidance - Management forecasts fiscal 2026 earnings to be between $3.40 and $3.50 per share, which is below Wall Street's expectation of $3.67 per share [4]. - Despite the earnings miss, Apogee's sales for the year are projected to approach the $1.4 billion forecast [5]. Valuation and Investment Consideration - With an expected earnings of $3.40, Apogee would have a price-to-earnings ratio of less than 10, and a dividend yield of 2.8% alongside a long-term earnings growth rate of 10% suggests the stock may not be overly expensive [5]. - There is a perspective that investors may be prematurely giving up on Apogee [5].