Apog Viracon

Source: Apogee Enterprises.

This article originally appeared as part of ongoing coverage in our premium Motley Fool Hidden Gems service... we hope you enjoy this complimentary peek!

Glass-solutions specialist Apogee Enterprises (NASDAQ:APOG) reported its fiscal second-quarter earnings yesterday afternoon, and the maker of architectural glass and framing products gave investors another solid quarter of growth. With the stock responding favorably to its report, Apogee shareholders hope that the company can sustain even further growth both for the rest of the year and in future years.

Framing the positives for Apogee's quarter
Growth investors have counted on Apogee to deliver solid numbers, and the company had plenty of good news to report. Revenue for the quarter came to almost $232 million, up more than 30% from year-ago levels and well ahead of the roughly $218 million investors had expected to see. Operating income soared 66%, and even after adjusting for the positive impact of a tax credit, earnings per share came in at $0.35, which topped last year's figures by 60%.

Apog Harmon
Source: Apogee Enterprises.

Boding even better for the future was the fact that Apogee saw its backlog soar by 58% to more than $480 million. CEO Joseph Puishys noted that all three of Apogee's architectural segments produced huge amounts of revenue growth, and backlogs for all three as well as the optical technologies segment were up from the first quarter. Architectural glass sales rose 20%, while architectural services soared 41%, and architectural framing revenue topped the list at 55%, but with about half of that figure coming from Apogee's acquisition of Canadian storefront business Alumicor.

What's next for Apogee?
In addition to its past success, Apogee sees a bright future ahead. The company raised its earnings-per-share guidance for the full fiscal year, although the boost only reflected the one-time tax credit that Apogee earned rather than any intrinsic success in the company's operations. An increase in revenue guidance to growth of 20% is at the top end of Apogee's previous range, though, reflecting solid sales prospects. Even the optical technologies business, which hasn't seen the same growth as its other counterparts within the company, should recover enough to let the segment perform similarly to how it did last year.

For his part, Puishys is optimistic about the future. He specifically noted that Apogee's backlog is the largest in six years, boding well for the company's next fiscal year. The CEO was also proud that Apogee has been able thus far to overcome some higher labor costs in order to grow its business more quickly and meet increased demand. Reopening a previously closed facility and expanding existing capacity show the confidence Apogee has that conditions will remain good for the foreseeable future.

Apog Wausau
Source: Apogee Enterprises.

Moreover, the results are consistent with the long-term thesis that Fool analyst Jeremy Myers highlighted in Hidden Gems' recommendation of the stock more than a year ago. Pointing to the strength of the commercial construction industry, Myers noted that private sector investment in building projects had picked up the slack of falling government spending. Since then, the economy has only improved from its already rising condition a year ago.

In after-hours trading immediately after the announcement, Apogee stock jumped almost 7%, reflecting investors' enthusiasm about the company's prospects. Worries about the future of construction will never entirely go away, but for now, Apogee continues to justify bullish investors' belief in the company and its shares.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.