Why Is Apogee Enterprises (APOG) Up 20.3% Since Last Earnings Report?

Core Viewpoint - Apogee Enterprises has experienced a 20.3% increase in share price over the past month, outperforming the S&P 500, but concerns remain about the sustainability of this trend leading up to the next earnings release [1][2]. Financial Performance - In Q3 fiscal 2026, Apogee reported adjusted earnings per share (EPS) of $1.02, missing the Zacks Consensus Estimate of $1.03, and reflecting a 14.3% decrease from the prior-year quarter [3]. - The company generated revenues of $349 million in the quarter, a 2.1% year-over-year increase, but fell short of the Zacks Consensus Estimate of $350 million [4]. - Cost of sales increased by 5.3% year over year to $266 million, leading to a gross profit decline of 6.9% to $82.9 million and a gross margin decrease to 23.8% from 26.1% [5]. Segment Performance - Revenues in the Architectural Metals segment decreased by 9.9% year over year to $124 million, while the Architectural Glass segment saw a 0.9% increase to $70.8 million [6]. - The Architectural Services segment's revenues improved by 0.2% to $105 million, and the Performance Surfaces segment experienced a significant 59.6% increase to $52.9 million, largely due to the UW Solutions acquisition [7]. Backlog and Cash Position - The backlog for the Architectural Services segment decreased to $775 million from $792 million in the previous quarter [8]. - Apogee had cash and cash equivalents of $41 million at the end of Q3 fiscal 2026, with cash provided by operating activities totaling $67 million for the first nine months of the fiscal year [9]. Guidance and Estimates - The company revised its guidance for net revenues to $1.39 billion from a previous range of $1.39-$1.42 billion, and adjusted EPS guidance to $3.40-$3.50 from $3.60-$3.90, reflecting unfavorable headwinds of 30 cents from tariffs [10]. - There has been a downward trend in estimates, with the consensus estimate shifting down by 14.29% [11]. VGM Scores and Outlook - Apogee has a subpar Growth Score of D and a Momentum Score of D, but a Value Score of B, placing it in the top 40% for this investment strategy, resulting in an aggregate VGM Score of C [12]. - The overall outlook indicates a downward trend in estimates, leading to a Zacks Rank of 5 (Strong Sell), suggesting a below-average return expectation in the coming months [13].