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In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 3.6% and increased 6.5% year over year. The top line lagged the consensus mark by 3.5% and declined 5.7% from the year-ago period’s levels.
Acuity Brands beat earnings expectations in the trailing 13 quarters.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to $3.57 from $3.55 in the past seven days. The projected figure indicates a decline of 9.6% from $3.95 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.02 billion, suggesting an 8.3% decline from the year-ago reported figure of $1.11 billion.
Acuity Brands’s fiscal fourth quarter top line is expected to have declined year over year due to lower sales within the Acuity Brands Lighting or ABL segment, consistent with lead-time normalization trends and the impact of the wider macro-environment. However, focus on enhancing product vitality, elevating service levels and benefits of its technological enhancements and new product innovation are expected to offset the adverse effects of the headwinds partially.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment revenues to decline 8.3% year over year to $967.8 million. The decline in the independent sales network and lower OEM sales will likely affect the segment’s revenue.
Within the ABL segment, we expect Independent Sales Network, Direct Sales Network, Corporate Accounts, Other revenues to decline 6.4%, 7.8%, 24.1% and 21.6% year over year to $690.2, $106, $55.4, and $67.4 million, respectively.
The company has gained from its diversified portfolio of innovative lighting control solutions and energy-efficient luminaries. Focus on Intelligent Spaces Group or ISG products specialized in providing products and services that enhance the intelligence, safety, and sustainability of spaces bodes well. Our model predicts ISG segment revenues in the fourth quarter to increase 5.2% year over year to $64.6 million.
Meanwhile, higher raw material and freight costs will likely put some pressure on the company’s fiscal fourth-quarter margins. The company is going through supply chain challenges and higher costs for some components. Our model predicts the adjusted operating margin in the fourth-quarter to decline 80 basis points year over year to 14.5%.
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 uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Acuity Brands has an Earnings ESP of +4.35% and carries a Zacks Rank #3.
Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector that also have the right combination of elements to post an earnings beat on their respective quarters to be reported.
EME’s earnings topped the consensus mark in all the last four quarters, the average being 17.2%. Earnings for the to-be-reported quarter are expected to grow 25.5% year over year.
Howmet Aerospace Inc. (HWM - Free Report) has an Earnings ESP of +2.31% and a Zacks Rank #2.
HWM’s earnings topped the consensus mark in two of the last four quarters and met on other two occasions, the average being 3.2%. Earnings for the to-be-reported quarter are expected to grow 19.4% year over year.
Watsco, Inc. (WSO - Free Report) has an Earnings ESP of +6.12% and a Zacks Rank #3.
WSO’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, the average being 3.5%. Earnings for the to-be-reported quarter are expected to rise 5% year over year.
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Acuity Brands (AYI) to Report Q4 Earnings: What's in Store?
Acuity Brands, Inc. (AYI - Free Report) will announce fourth-quarter fiscal 2023 results on Oct 4, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 3.6% and increased 6.5% year over year. The top line lagged the consensus mark by 3.5% and declined 5.7% from the year-ago period’s levels.
Acuity Brands beat earnings expectations in the trailing 13 quarters.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to $3.57 from $3.55 in the past seven days. The projected figure indicates a decline of 9.6% from $3.95 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.02 billion, suggesting an 8.3% decline from the year-ago reported figure of $1.11 billion.
Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote
Factors to Note
Acuity Brands’s fiscal fourth quarter top line is expected to have declined year over year due to lower sales within the Acuity Brands Lighting or ABL segment, consistent with lead-time normalization trends and the impact of the wider macro-environment. However, focus on enhancing product vitality, elevating service levels and benefits of its technological enhancements and new product innovation are expected to offset the adverse effects of the headwinds partially.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment revenues to decline 8.3% year over year to $967.8 million. The decline in the independent sales network and lower OEM sales will likely affect the segment’s revenue.
Within the ABL segment, we expect Independent Sales Network, Direct Sales Network, Corporate Accounts, Other revenues to decline 6.4%, 7.8%, 24.1% and 21.6% year over year to $690.2, $106, $55.4, and $67.4 million, respectively.
The company has gained from its diversified portfolio of innovative lighting control solutions and energy-efficient luminaries. Focus on Intelligent Spaces Group or ISG products specialized in providing products and services that enhance the intelligence, safety, and sustainability of spaces bodes well. Our model predicts ISG segment revenues in the fourth quarter to increase 5.2% year over year to $64.6 million.
Meanwhile, higher raw material and freight costs will likely put some pressure on the company’s fiscal fourth-quarter margins. The company is going through supply chain challenges and higher costs for some components. Our model predicts the adjusted operating margin in the fourth-quarter to decline 80 basis points year over year to 14.5%.
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 uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Acuity Brands has an Earnings ESP of +4.35% and carries a Zacks Rank #3.
Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector that also have the right combination of elements to post an earnings beat on their respective quarters to be reported.
EMCOR Group, Inc. (EME - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
EME’s earnings topped the consensus mark in all the last four quarters, the average being 17.2%. Earnings for the to-be-reported quarter are expected to grow 25.5% year over year.
Howmet Aerospace Inc. (HWM - Free Report) has an Earnings ESP of +2.31% and a Zacks Rank #2.
HWM’s earnings topped the consensus mark in two of the last four quarters and met on other two occasions, the average being 3.2%. Earnings for the to-be-reported quarter are expected to grow 19.4% year over year.
Watsco, Inc. (WSO - Free Report) has an Earnings ESP of +6.12% and a Zacks Rank #3.
WSO’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, the average being 3.5%. Earnings for the to-be-reported quarter are expected to rise 5% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.