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In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 20.4% and increased 13.1% year over year. The top line also beat the consensus mark by 1.1% but decreased 6.3% from the prior year.
Acuity Brands beat earnings expectations in the trailing 15 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained stable at $3.13 in the past 60 days. The estimated figure indicates a slight increase of 2.3% from the $3.06 per share reported in the year-ago quarter.
The consensus mark for revenues is pegged at $899.34 million, suggesting a 4.7% decrease from the year-ago reported figure of $943.6 million.
Factors to Note
Acuity Brands’ revenues are expected to have declined year over year in the fiscal second quarter due to tepidness in the Acuity Brands Lighting (ABL) segment. The segment is ailing from difficult year-over-year comparisons amid improving material costs.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment revenues to decline 6% year over year to $837 million. The decline across the sales channels is likely to affect the segment’s revenues.
Within the ABL segment, we expect Independent Sales Network, Direct Sales Network, Retail Sales, Corporate Accounts and Other revenues to decline 5.4%, 2.1%, 6.2%, 19.9% and 6.2%, respectively, year over year.
However, the firm’s focus on enhancing product vitality, elevating service levels and benefiting from its technological enhancements and new product innovation is expected to partially offset the adverse effects of these headwinds.
The company has gained from its diversified portfolio of innovative lighting control solutions and energy-efficient luminaries. Its focus on Intelligent Spaces Group (ISG) products, which specialize in providing products and services that enhance the intelligence, safety and sustainability of spaces, bodes well. Our model predicts the ISG segment’s revenues in the fiscal second quarter to increase 16.1% year over year to $67.6 million.
Meanwhile, increased prices and cost containment efforts are likely to have aided margins to some extent in the to-be-reported quarter. Our model predicts the adjusted operating margin in the fiscal second quarter to decline 20 basis points year over year to 13.8%.
What Our Model Indicates
Our proven model does not conclusively predict 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. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is -5.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Acuity Brands currently has a Zacks Rank #3.
Stocks With the Favorable Combination
According to our model, here are some companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat in the quarter to be reported.
SUM’s earnings topped the consensus mark in each of the last four quarters, the average being 18.2%. Earnings for the to-be-reported quarter are expected to gain 15.4% year over year.
JELD-WEN Holding, Inc. (JELD - Free Report) has an Earnings ESP of +20.69% and a Zacks Rank #3.
JELD’s earnings topped the consensus mark in the trailing four quarters, the average surprise being 116.5%. Earnings for the to-be-reported quarter are expected to decline 34.3% year over year.
Installed Building Products Inc. (IBP - Free Report) has an Earnings ESP of +9.46% and sports a Zacks Rank #1.
IBP’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 7.4%. Earnings for the to-be-reported quarter are expected to grow 6.1% year over year.
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Acuity Brands (AYI) to Post Q2 Earnings: Factors to Consider
Acuity Brands, Inc. (AYI - Free Report) is scheduled to announce second-quarter fiscal 2024 results on Apr 3, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 20.4% and increased 13.1% year over year. The top line also beat the consensus mark by 1.1% but decreased 6.3% from the prior year.
Acuity Brands beat earnings expectations in the trailing 15 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained stable at $3.13 in the past 60 days. The estimated figure indicates a slight increase of 2.3% from the $3.06 per share reported in the year-ago quarter.
Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote
The consensus mark for revenues is pegged at $899.34 million, suggesting a 4.7% decrease from the year-ago reported figure of $943.6 million.
Factors to Note
Acuity Brands’ revenues are expected to have declined year over year in the fiscal second quarter due to tepidness in the Acuity Brands Lighting (ABL) segment. The segment is ailing from difficult year-over-year comparisons amid improving material costs.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment revenues to decline 6% year over year to $837 million. The decline across the sales channels is likely to affect the segment’s revenues.
Within the ABL segment, we expect Independent Sales Network, Direct Sales Network, Retail Sales, Corporate Accounts and Other revenues to decline 5.4%, 2.1%, 6.2%, 19.9% and 6.2%, respectively, year over year.
However, the firm’s focus on enhancing product vitality, elevating service levels and benefiting from its technological enhancements and new product innovation is expected to partially offset the adverse effects of these headwinds.
The company has gained from its diversified portfolio of innovative lighting control solutions and energy-efficient luminaries. Its focus on Intelligent Spaces Group (ISG) products, which specialize in providing products and services that enhance the intelligence, safety and sustainability of spaces, bodes well. Our model predicts the ISG segment’s revenues in the fiscal second quarter to increase 16.1% year over year to $67.6 million.
Meanwhile, increased prices and cost containment efforts are likely to have aided margins to some extent in the to-be-reported quarter. Our model predicts the adjusted operating margin in the fiscal second quarter to decline 20 basis points year over year to 13.8%.
What Our Model Indicates
Our proven model does not conclusively predict 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. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is -5.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Acuity Brands currently has a Zacks Rank #3.
Stocks With the Favorable Combination
According to our model, here are some companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat in the quarter to be reported.
Summit Materials, Inc. (SUM - Free Report) has an Earnings ESP of +127.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SUM’s earnings topped the consensus mark in each of the last four quarters, the average being 18.2%. Earnings for the to-be-reported quarter are expected to gain 15.4% year over year.
JELD-WEN Holding, Inc. (JELD - Free Report) has an Earnings ESP of +20.69% and a Zacks Rank #3.
JELD’s earnings topped the consensus mark in the trailing four quarters, the average surprise being 116.5%. Earnings for the to-be-reported quarter are expected to decline 34.3% year over year.
Installed Building Products Inc. (IBP - Free Report) has an Earnings ESP of +9.46% and sports a Zacks Rank #1.
IBP’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 7.4%. Earnings for the to-be-reported quarter are expected to grow 6.1% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.