Apogee Enterprises

Apogee will announce its fiscal 2016 first quarter results after the market closes on June 22. The company will host a call with investors the following day after the market opens. Expectations are for a 20% jump in earnings to $.49 and a 3% increase in revenue.

Exactech

The company’s share price reached a 52-week high on Wednesday closing at just under $26.

Since March, the company’s expected full year 2016 earnings were raised from $1.15 to $1.17. Despite this increase, earnings will grow just 14% over the next two years and the stock trades with a PE of 19. We continue to look for an impetus that will drive earnings growth higher but cannot justify buying the stock at today’s price. Exactech remains a Hold.

On Assignment

On Monday the company’s Board of Directors announced a $150 million stock repurchase plan that supersedes its previous $100 million plan. A stock repurchase plan is typically a signal that a company’s management believes that its stock is undervalued and by buying back its own stock it can increase the value of the remaining shares outstanding.

The buy-back would add another lever of earnings growth. The company did not repurchase any stock in the first quarter and repurchased only $1.6 million in 2015. If the entire plan were executed, the lower share count would boost earnings 5%.

Supreme Industries

Supreme Industries got clocked 17% on June 9 due to a downgrade by Sidoti. The brokerage firm changed its recommendation on the stock to neutral from buy as it got close to the firm’s $15 target. 

We don’t have access to the report but spoke with Matt Dennis at Supreme who had read it. Dennis told us Sidoti did not lower any estimates nor change its opinion about the health of Supreme’s business.

We put out an alert recommending subscribers take advantage of the dip. Supreme’s earnings are expected to grow 25% in 2016 and 20% in 2017. While the stock has rebounded from its low under $12, we still think the stock is a great buy.