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Acuity Brands (AYI) Q3 Earnings Preview: Innovations to Aid

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Acuity Brands, Inc. (AYI - Free Report) is slated to announce third-quarter fiscal 2022 results on Jun 30, before the opening bell.

In the last reported quarter, the company’s adjusted earnings and sales topped the Zacks Consensus Estimate by 11.3% and 1.3%, respectively. On a year-over-year basis, the top and bottom lines increased 21.2% and 17.1%, respectively.

Acuity Brands beat earnings expectations in the trailing eight quarters.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $2.96 over the past 60 days. The estimated figure indicates an increase of 6.9% from $2.77 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $983.5 million, suggesting a 9.3% increase from the year-ago’s reported figure of $899.7 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

Despite higher raw materials and freight costs, along with supply-chain interruptions for electrical components, Acuity Brands’ third-quarter fiscal 2022 earnings are likely to have registered year-over-year growth.

The company has been banking on its strength in go-to market channels and product portfolio. Its focus on service and product vitality and inorganic moves also bode well. Effective cost management and price increase across the portfolio might have added to the positives in the quarter. Segment wise, it remains optimistic about Acuity Brands Lighting and Lighting Controls ("ABL") as well as Intelligent Spaces Group ("ISG") businesses.

The company is focused on investing in product development. It has been introducing new lighting and controls products, and evolving 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, thereby helping in improving margins.

The company has been investing to prioritize deliveries for customers when others have been unable to. It has been focusing on certain areas to create compelling new products that are both innovative and market-moving. These moves are likely to have contributed to fiscal third-quarter revenues.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for AYI 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. This is not the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Currently, AYI has a Zacks Rank #3 and an Earnings ESP of +0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable Combination

According to our model, here are some companies that have the right combination of elements to post an earnings beat in their respective results.

KBR, Inc. (KBR - Free Report) has an Earnings ESP of +0.31% and holds a Zacks Rank #2.

KBR is expected to register 10.3% growth in earnings for the to-be-reported quarter. Notably, KBR reported better-than-expected earnings in all of the last four quarters, with the average surprise being 12%.

PotlatchDeltic Corporation (PCH - Free Report) has an Earnings ESP of +14.69% and a Zacks Rank #3.

PCH’s earnings for the to-be-reported quarter are expected to decline 44.4%. The company reported better-than-expected earnings in three of the last four quarters but missed on one occasion, with the average surprise being 7.2%.

Martin Marietta Materials, Inc. (MLM - Free Report) has an Earnings ESP of +3.26% and a Zacks Rank #3.

MLM is expected to register 10.2% growth in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, with the average negative surprise being 10.2%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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