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In the last-reported quarter, the company’s adjusted earnings and sales topped the Zacks Consensus Estimate by 17.9% and 0.4%, respectively. On a year-over-year basis, the top and bottom lines increased by 20.8% and 11.8%, respectively.
Acuity Brands beat earnings expectations in the trailing 10 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to $2.82 from $2.87 over the past seven days. The estimated figure indicates a decrease of 1.1% from $2.85 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1 billion, suggesting an 8.3% increase from $926.1 million a year ago.
Higher pricing, filling of back orders along with renovation projects are likely to have aided the company’s sales in the to-be-reported quarter. The focus on product vitality and service levels, solid contribution from its Acuity Brands Lighting and Lighting Controls or ABL segment, benefits from recent price increases and the OSRAM DS business acquisition are likely to have driven growth for Acuity Brands during the first quarter of fiscal 2023.
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.
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 facilities to mitigate the supply-chain complexity, thereby helping in improving margins.
However, higher raw materials and freight costs, along with supply-chain interruptions for electrical components, are likely to have weighed on its quarterly margins. Again, slowing demand, project delays and more competitive pricing are added headwinds.
Segment-wise, the Zacks Consensus Estimate for ABL segment revenues is currently pegged at $951 million, down from $1,055 million in the fiscal fourth quarter. Within the ABL segment, the consensus estimate for the Independent Sales Network sales is currently pegged at $676 million (down from $737 million reported in the prior quarter). The consensus mark for the Direct Sales Network sales is currently pegged at $95 million (down from $115 million reported in the prior quarter).
Retail sales are pegged at $44.7 million, up from $44 million reported in the previous quarter. Sales in the Corporate Accounts channel are expected to fall to $55 million from $73 million reported in the previous quarter.
What Our Model Indicates
Our proven model predicts 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 exactly 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 an Earnings ESP of +7.71% and a Zacks Rank #3. 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.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +36.36% and holds a Zacks Rank #2.
DY is expected to register 800% growth in earnings for the to-be-reported quarter. Notably, DY reported better-than-expected earnings in all the last four quarters, with the average surprise being 142.9%.
Quanta Services, Inc. (PWR - Free Report) has an Earnings ESP of +0.73% and a Zacks Rank #3.
PWR’s earnings for the to-be-reported quarter are expected to grow 4.6%. The company reported better-than-expected earnings in three of the last four quarters and met on one occasion, with the average surprise being 5.9%.
United Rentals, Inc. (URI - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #2.
URI’s earnings for the to-be-reported quarter are expected to grow 34.4%. The company reported better-than-expected earnings in all the last four quarters, with the average surprise being 9.5%.
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Acuity Brands (AYI) to Report Q1 Earnings: What's in Store?
Acuity Brands, Inc. (AYI - Free Report) is slated to announce first-quarter fiscal 2023 results on Jan 9, before the opening bell.
In the last-reported quarter, the company’s adjusted earnings and sales topped the Zacks Consensus Estimate by 17.9% and 0.4%, respectively. On a year-over-year basis, the top and bottom lines increased by 20.8% and 11.8%, respectively.
Acuity Brands beat earnings expectations in the trailing 10 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased to $2.82 from $2.87 over the past seven days. The estimated figure indicates a decrease of 1.1% from $2.85 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1 billion, suggesting an 8.3% increase from $926.1 million a year ago.
Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote
Factors to Note
Higher pricing, filling of back orders along with renovation projects are likely to have aided the company’s sales in the to-be-reported quarter. The focus on product vitality and service levels, solid contribution from its Acuity Brands Lighting and Lighting Controls or ABL segment, benefits from recent price increases and the OSRAM DS business acquisition are likely to have driven growth for Acuity Brands during the first quarter of fiscal 2023.
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.
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 facilities to mitigate the supply-chain complexity, thereby helping in improving margins.
However, higher raw materials and freight costs, along with supply-chain interruptions for electrical components, are likely to have weighed on its quarterly margins. Again, slowing demand, project delays and more competitive pricing are added headwinds.
Segment-wise, the Zacks Consensus Estimate for ABL segment revenues is currently pegged at $951 million, down from $1,055 million in the fiscal fourth quarter. Within the ABL segment, the consensus estimate for the Independent Sales Network sales is currently pegged at $676 million (down from $737 million reported in the prior quarter). The consensus mark for the Direct Sales Network sales is currently pegged at $95 million (down from $115 million reported in the prior quarter).
Retail sales are pegged at $44.7 million, up from $44 million reported in the previous quarter. Sales in the Corporate Accounts channel are expected to fall to $55 million from $73 million reported in the previous quarter.
What Our Model Indicates
Our proven model predicts 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 exactly 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 an Earnings ESP of +7.71% and a Zacks Rank #3. 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.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +36.36% and holds a Zacks Rank #2.
DY is expected to register 800% growth in earnings for the to-be-reported quarter. Notably, DY reported better-than-expected earnings in all the last four quarters, with the average surprise being 142.9%.
Quanta Services, Inc. (PWR - Free Report) has an Earnings ESP of +0.73% and a Zacks Rank #3.
PWR’s earnings for the to-be-reported quarter are expected to grow 4.6%. The company reported better-than-expected earnings in three of the last four quarters and met on one occasion, with the average surprise being 5.9%.
United Rentals, Inc. (URI - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #2.
URI’s earnings for the to-be-reported quarter are expected to grow 34.4%. The company reported better-than-expected earnings in all the last four quarters, with the average surprise being 9.5%.