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Acuity Brands (AYI) to Post Q3 Earnings: What's in Store?

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Acuity Brands, Inc. (AYI - Free Report) is slated to announce third-quarter fiscal 2021 results on Jul 1, before the opening bell.

In the last reported quarter, its adjusted earnings topped the Zacks Consensus Estimate by 25.4% but revenues lagged the same by 1%. On a year-over-year basis, its top line declined 5.8% but bottom line improved 15.2%.

Markedly, the company beat earnings expectations in the trailing four quarters, with the average being 26.8%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been upwardly revised to $2.25 over the past seven days. The estimated figure indicates an increase of 16% from $1.94 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $843.15 million, suggesting an 8.6% increase from the year-ago reported figure of $776.2 million.

Acuity Brands Inc Price and EPS Surprise

Acuity Brands Inc Price and EPS Surprise

Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote

Factors to Note

Acuity Brands’ fiscal third-quarter earnings are likely to have registered year-over-year growth due to ongoing product and productivity improvements along with efficient cost management. Also, its announcement of price increase across the portfolio effective Mar 15 certainly added to the positives.

Moreover, the company has been focusing on investment in product development. It introduced new lighting and controls products as well as improved and evolved certain parts of the product and solutions portfolio. These products use fewer inputs and are highly mobile. Some of the products are globally sourced, while others are manufactured in the company’s own facilities to mitigate supply chain complexity. These moves are likely to have contributed to fiscal third-quarter revenues.

Also, Acuity Brands expects sequential growth in the Retail channel. This potential improvement is likely to have boosted sales in the fiscal third quarter.

However, net sales in its corporate accounts channel are likely to have softened, mainly due to the impact of the COVID-19 pandemic on retail customers. These customers delayed many retrofit opportunities, given their limited activity in the stores.

What Our Model Indicates

Our proven model predicts an earnings beat for Acuity Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Currently, the company has a Zacks Rank #2 and an Earnings ESP of +7.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +5.47% and a Zacks Rank #2.

PotlatchDeltic Corporation (PCH - Free Report) has an Earnings ESP of +3.55% and sports a Zacks Rank #1.

Floor & Decor Holdings, Inc. (FND - Free Report) has an Earnings ESP of +9.92% and a Zacks Rank #2.

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