Apogee Blames Weather for Earnings Miss

The glass maker said "unusually severe winter weather" disrupted manufacturing

Deputy Editor
Apr 11, 2019 at 9:55 AM
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Shares of glass maker Apogee Enterprises Inc (NASDAQ:APOG) are struggling on the charts, after the company reported fourth-quarter earnings and revenue that fell below analysts' expectations. The company said harsh winter weather disrupting some manufacturing locations was a factor in slowing business, and Apogee issued full-year earnings below Wall Street estimates. As a result, APOG shares are down 10% to trade at $34.92.

Prior to today, APOG stock was in rally mode. The equity just came off a 10-day win streak -- ended April 5 -- running up to its 200-day moving average, and touched a year-to-date high on April 8. Today, however, the security is set to close beneath its 50-day moving average for the first time since mid-January. 

APOG could be at risk for analyst downgrades, too. Currently, three of the five analysts following the stock consider it a "strong buy," while the other two call it a "hold," with not a "sell" in sight. Plus, the consensus 12-month price target of $40 now represents a 14% premium to current levels. 

While short sellers started hitting the exits ahead of earnings -- short interest dropped 8.7% in the last reporting period -- the 2.29 million shares sold short still represent a healthy 9.2% of the stock's available float. Today, though, APOG is on the short-sale restricted list.

Options traders, on the other hand, were upping the bearish ante before earnings. APOG sports a 50-day put/call volume ratio of 0.85 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), that sits in the 90th percentile of its annual range. This means traders have been purchasing to open puts at a quicker-than-usual clip in the past 10 weeks. 


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