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Investing.com – Apogee (NASDAQ:APOG) shares plunged 9% Thursday after the company’s forecast of lower earnings spooked investors at a time when they expected a better outlook, if not a very rosy one.
The shares, still more than double their 52-week lows, are off nearly 17% from their year’s peak.
Apogee expects 2022 earnings to be in the range of $2.10 to $2.35 per diluted share as against $2.40 in 2021.
The company sees its capital expenditure rising almost 72% from a year ago to $45 million in 2022.
Apogee CEO Ty R. Silberhorn said uncertainty remains about the direction of non-residential construction markets in 2022, a statement that didn’t go down well with investors. The comments come as the Biden administration has proposed a $2 trillion infrastructure push to build schools, hospitals, roads, electricity grid, and broadband over eight years.
One expected Apogee, a provider of aluminum framing systems and architectural glass, to provide a bullish scenario given that its business would be a direct beneficiary of the money going into building the country’s infrastructure but the outlook turned out to be way more pessimistic.
For the fourth quarter the company reported a loss of $42.4 million, or $1.65, after reporting a profit in the same period a year earlier. Adjusted earnings were 63 cents a share on revenue of $308.6. For the year, the company reported profit of $15.4 million, or 59 cents per share, on revenue of $1.23 billion.
