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Acuity Brands (AYI) Q4 Earnings Top Estimates, Margins Down
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Acuity Brands, Inc. (AYI - Free Report) reported solid fourth-quarter fiscal 2022 results. The top and the bottom line surpassed the Zacks Consensus Estimate and increased on a year-over-year basis. The upside was backed by strong demand across the end markets along with price increases and product and productivity improvement.
Pertaining to the quarterly release, Neil Ashe — chairman, president, and chief executive officer of Acuity Brands — said, "We continued to deliver strong results in the fiscal fourth quarter, concluding what has been a very good fiscal 2022. We had strong demand across our end markets, and we demonstrated our ability to capture price and drive volume through product vitality and service in both our lighting and spaces businesses throughout this fiscal year.
Delving Deeper
AYI reported adjusted earnings of $3.95 per share, which topped the consensus estimate of $3.35 by 17.9%. The metric also increased 20.8% from the year-ago reported figure of $3.27 per share.
Acuity Brands Inc Price, Consensus and EPS Surprise
Net sales of $1,110 million marginally surpassed the consensus mark of $1,106 million and increased 11.8% from the prior-year quarter’s levels.
Segment Details
Acuity Brands Lighting and Lighting Controls or ABL’s net sales rose 11.4% year over year to $1.06 billion. Net sales in the Independent Sales Network were up 11.2% year over year to $737.1 million. Direct Sales Network sales were 12.5% up from the prior-year period’s levels to $114.9 million. Yet, Retail sales of $44 million declined 3.7% from the prior-year quarter’s levels. Sales in the Corporate Accounts channel fell 3.4% from the prior year’s levels to $73 million. The Other channel generated sales of $86 million, up 42.4% from the prior-year period’s levels.
Adjusted operating profit in the segment increased 1.6% from the prior year’s levels. The adjusted operating margin was down 150 basis points (bps) year over year.
Intelligent Spaces Group or ISG generated net sales of $61.4 million, up 21.6% year over year. Adjusted operating profit was $14.6 million, up from $6 million reported a year ago. Adjusted operating margin was up 1,190 bps year over year to 23.8% from 11.9% reported a year ago.
Operating Highlights
Gross margin declined 50 bps on a year-over-year basis to 41.7%. Adjusted operating margin came in at 15.3%, down 50 bps year over year. Adjusted EBITDA rose 6.8% to $182.9 million from a year ago.
Fiscal 2022 Highlights
For the year, net sales increased 15.7% year over year to $4.01 billion. Adjusted earnings of $12.83 per share increased 26.2% from the year-ago reported figure of $10.17 per share.
Adjusted operating margin of 14.7%, up 10 bps year over year. Adjusted EBITDA rose 13.5% to $641.9 million from a year ago.
Financials
At the fiscal 2022-end, Acuity Brands had cash and cash equivalents of $223.2 million compared with $491.3 million at the fiscal 2021-end. For fiscal 2022, cash provided by operating activities totaled $316.3 million, down from $408.7 million in the prior-year period.
During fiscal 2022, the company repurchased nearly 3 million shares of its common stock for $512 million.
Advanced Drainage Systems, Inc. (WMS - Free Report) : Headquartered in Hilliard, OH, this company provides innovative water management solutions in stormwater and on-site septic wastewater industries. Despite a challenging operating environment, the material conversion strategy, complete water management solutions and focus on key sales programs have been driving Advanced Drainage Systems’ growth.
WMS currently carries a Zacks Rank #1. Earnings estimates for fiscal 2023 have increased to $6.39 per share from $4.23 over the past 60 days. The estimated figure calls for an 79.5% increase from the year-ago period.
Boise Cascade Company (BCC - Free Report) : Boise, ID-based Boise Cascade — which makes wood products and distributes building materials in the United States and Canada — is aided by favorable commodity wood products, pricing and robust construction activity.
Boise Cascade currently carries a Zacks Rank #1. Earnings estimates for 2022 have moved north to $20.48 per share from $20.06 over the past 30 days. The estimated figure calls for an 14% increase from the year-ago period.
Dycom Industries, Inc. (DY - Free Report) : Dycom Industries is benefiting from the higher demand for network bandwidth and mobile broadband, extended geography, proficient program management and network planning services. Dycom expects considerable opportunities across a broad array of customers.
Dycom currently carries a Zacks Rank #1. Earnings estimates for 2022 have moved north to $3.68 per share from $3.28 over the past 60 days. The estimated figure calls for an 142.1% increase from the year-ago period.
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Acuity Brands (AYI) Q4 Earnings Top Estimates, Margins Down
Acuity Brands, Inc. (AYI - Free Report) reported solid fourth-quarter fiscal 2022 results. The top and the bottom line surpassed the Zacks Consensus Estimate and increased on a year-over-year basis. The upside was backed by strong demand across the end markets along with price increases and product and productivity improvement.
Pertaining to the quarterly release, Neil Ashe — chairman, president, and chief executive officer of Acuity Brands — said, "We continued to deliver strong results in the fiscal fourth quarter, concluding what has been a very good fiscal 2022. We had strong demand across our end markets, and we demonstrated our ability to capture price and drive volume through product vitality and service in both our lighting and spaces businesses throughout this fiscal year.
Delving Deeper
AYI reported adjusted earnings of $3.95 per share, which topped the consensus estimate of $3.35 by 17.9%. The metric also increased 20.8% from the year-ago reported figure of $3.27 per share.
Acuity Brands Inc Price, Consensus and EPS Surprise
Acuity Brands Inc price-consensus-eps-surprise-chart | Acuity Brands Inc Quote
Net sales of $1,110 million marginally surpassed the consensus mark of $1,106 million and increased 11.8% from the prior-year quarter’s levels.
Segment Details
Acuity Brands Lighting and Lighting Controls or ABL’s net sales rose 11.4% year over year to $1.06 billion. Net sales in the Independent Sales Network were up 11.2% year over year to $737.1 million. Direct Sales Network sales were 12.5% up from the prior-year period’s levels to $114.9 million. Yet, Retail sales of $44 million declined 3.7% from the prior-year quarter’s levels. Sales in the Corporate Accounts channel fell 3.4% from the prior year’s levels to $73 million. The Other channel generated sales of $86 million, up 42.4% from the prior-year period’s levels.
Adjusted operating profit in the segment increased 1.6% from the prior year’s levels. The adjusted operating margin was down 150 basis points (bps) year over year.
Intelligent Spaces Group or ISG generated net sales of $61.4 million, up 21.6% year over year. Adjusted operating profit was $14.6 million, up from $6 million reported a year ago. Adjusted operating margin was up 1,190 bps year over year to 23.8% from 11.9% reported a year ago.
Operating Highlights
Gross margin declined 50 bps on a year-over-year basis to 41.7%. Adjusted operating margin came in at 15.3%, down 50 bps year over year. Adjusted EBITDA rose 6.8% to $182.9 million from a year ago.
Fiscal 2022 Highlights
For the year, net sales increased 15.7% year over year to $4.01 billion. Adjusted earnings of $12.83 per share increased 26.2% from the year-ago reported figure of $10.17 per share.
Adjusted operating margin of 14.7%, up 10 bps year over year. Adjusted EBITDA rose 13.5% to $641.9 million from a year ago.
Financials
At the fiscal 2022-end, Acuity Brands had cash and cash equivalents of $223.2 million compared with $491.3 million at the fiscal 2021-end. For fiscal 2022, cash provided by operating activities totaled $316.3 million, down from $408.7 million in the prior-year period.
During fiscal 2022, the company repurchased nearly 3 million shares of its common stock for $512 million.
Zacks Rank & Key Picks
Acuity Brands currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advanced Drainage Systems, Inc. (WMS - Free Report) : Headquartered in Hilliard, OH, this company provides innovative water management solutions in stormwater and on-site septic wastewater industries. Despite a challenging operating environment, the material conversion strategy, complete water management solutions and focus on key sales programs have been driving Advanced Drainage Systems’ growth.
WMS currently carries a Zacks Rank #1. Earnings estimates for fiscal 2023 have increased to $6.39 per share from $4.23 over the past 60 days. The estimated figure calls for an 79.5% increase from the year-ago period.
Boise Cascade Company (BCC - Free Report) : Boise, ID-based Boise Cascade — which makes wood products and distributes building materials in the United States and Canada — is aided by favorable commodity wood products, pricing and robust construction activity.
Boise Cascade currently carries a Zacks Rank #1. Earnings estimates for 2022 have moved north to $20.48 per share from $20.06 over the past 30 days. The estimated figure calls for an 14% increase from the year-ago period.
Dycom Industries, Inc. (DY - Free Report) : Dycom Industries is benefiting from the higher demand for network bandwidth and mobile broadband, extended geography, proficient program management and network planning services. Dycom expects considerable opportunities across a broad array of customers.
Dycom currently carries a Zacks Rank #1. Earnings estimates for 2022 have moved north to $3.68 per share from $3.28 over the past 60 days. The estimated figure calls for an 142.1% increase from the year-ago period.