Investors may be abandoning Apogee stock too soon.
Apogee Enterprises (APOG 13.11%) stock, a manufacturer of architectural glass and metal products for buildings, crashed 13.7% through 11:15 a.m. ET after missing on sales in its Q3 2026 earnings report Wednesday.
Heading into the report, analysts forecast Apogee to earn $1.01 per share, adjusted for one-time items, on sales of $355.3 million. Apogee actually earned $1.02 per share, adjusted, but its sales were only $348.6 million.
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Apogee Q3 earnings
Earnings as calculated according to generally accepted accounting principles (GAAP) were only $0.77 per share, 20% below year-ago earnings. This was despite sales growing 2% year over year, but with weakening profit margins.
CEO Donald Nolan said “higher aluminum, restructuring and health insurance costs” all weighed on results. He insisted Apogee’s “strong operational foundation and balance sheet position us to navigate near-term challenges.”
The company enjoyed revenue growth in architectural services and glass sales, while its architectural metals segment suffered a 10% decline in sales. Only performance surfaces (coated glass and acrylics) enjoyed strong sales growth, up 60% to $53 million.
Is Apogee stock a buy?
That single segment’s strong performance might not save Apogee this year. Turning to guidance, management predicts fiscal 2026 earnings will be between $3.40 and $3.50 per share, after subtracting $0.30 in profit due to tariffs. This would be far below the $3.67 per share Wall Street has been forecasting.
Still, Apogee sales for the year should come close to meeting the Street’s $1.4 billion forecast. And even $3.40 in earnings would be enough to give Apogee a price-to-earnings ratio of less than 10. With a 2.8% dividend yield and a 10% long-term earnings growth rate, Apogee doesn’t appear overly expensive to me.
Investors may be giving up on Apogee too soon.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
