We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Acuity Brands (AYI) Repurchases 2 Million of Its Shares
Read MoreHide Full Article
Acuity Brands, Inc.’s (AYI - Free Report) recently completed the previously authorized share repurchase program. The repurchases represent a reduction of approximately 5% or 2 million shares of the company’s common stock. As of Mar 30, 2017, the company had approximately 44.1 million shares outstanding.
Share repurchases benefit the company’s earnings per share, book value as well as shareholder equity as it reduces the number of shares outstanding. Thus, share buyback programs raise optimism among investors and boost their confidence in a stock. Also, the company’s strong capital position is reflected in its regular share repurchases.
Acuity Brands strong balance sheet provides it with the financial flexibility to undertake shareholder-friendly initiatives. Cash and cash equivalents, as of Feb 28, 2016, were $463.2 million, up from $413.2 million in fiscal 2016.
Management believes that the repurchase is in line with Acuity Brands’ long-term goal of enhancing shareholder value while continuing to serve customers and grow its business, organically and through acquisitions.
The company expects the North American lighting market to return to growth in fiscal 2018. It expects to consistently outperform growth rates in markets that it serves by executing strategies focused on new construction and renovation projects, expansion into underpenetrated geographies and channels, and growth from continued introduction of lighting and building management.
Notably, Acuity Brands’ earnings per share lagged analysts’ expectation in all of the trailing four quarters, with an average negative surprise of 5%. Also in the second quarter of fiscal 2017, adjusted earnings of $1.65 decreased 2.9% on a year over year basis. We note that shares lost around 16.6% year to date, on par with the Zacks categorized Building Products - Lighting Fixtures industry’s fall.
Meanwhile, estimates for the current year and the next have moved down for the company over the last 60 days. We expect the share buyback to benefit the company’s EPS and lift up the market value due to reduced number of shares outstanding.
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the second quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 1.7% and 5.2%, respectively.
NVR, Inc. (NVR - Free Report) reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate by 27.3%. The reported figure rose 59% from the year-ago profit level.
Louisiana-Pacific (LPX - Free Report) reported adjusted earnings per share of 33 cents in the first quarter of 2017, beating the Zacks Consensus Estimate by 6.5%.
Net sales of $610.9 million in the quarter surpassed the Zacks Consensus Estimate of by 5.7%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Acuity Brands (AYI) Repurchases 2 Million of Its Shares
Acuity Brands, Inc.’s (AYI - Free Report) recently completed the previously authorized share repurchase program. The repurchases represent a reduction of approximately 5% or 2 million shares of the company’s common stock. As of Mar 30, 2017, the company had approximately 44.1 million shares outstanding.
.jpg)
Share repurchases benefit the company’s earnings per share, book value as well as shareholder equity as it reduces the number of shares outstanding. Thus, share buyback programs raise optimism among investors and boost their confidence in a stock. Also, the company’s strong capital position is reflected in its regular share repurchases.
Acuity Brands strong balance sheet provides it with the financial flexibility to undertake shareholder-friendly initiatives. Cash and cash equivalents, as of Feb 28, 2016, were $463.2 million, up from $413.2 million in fiscal 2016.
Management believes that the repurchase is in line with Acuity Brands’ long-term goal of enhancing shareholder value while continuing to serve customers and grow its business, organically and through acquisitions.
The company expects the North American lighting market to return to growth in fiscal 2018. It expects to consistently outperform growth rates in markets that it serves by executing strategies focused on new construction and renovation projects, expansion into underpenetrated geographies and channels, and growth from continued introduction of lighting and building management.
Notably, Acuity Brands’ earnings per share lagged analysts’ expectation in all of the trailing four quarters, with an average negative surprise of 5%. Also in the second quarter of fiscal 2017, adjusted earnings of $1.65 decreased 2.9% on a year over year basis. We note that shares lost around 16.6% year to date, on par with the Zacks categorized Building Products - Lighting Fixtures industry’s fall.
Meanwhile, estimates for the current year and the next have moved down for the company over the last 60 days. We expect the share buyback to benefit the company’s EPS and lift up the market value due to reduced number of shares outstanding.
Zacks Rank & Peer Releases
Acuity Brands carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the second quarter of fiscal 2017, with earnings and revenues beating the Zacks Consensus Estimate by 1.7% and 5.2%, respectively.
NVR, Inc. (NVR - Free Report) reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate by 27.3%. The reported figure rose 59% from the year-ago profit level.
Louisiana-Pacific (LPX - Free Report) reported adjusted earnings per share of 33 cents in the first quarter of 2017, beating the Zacks Consensus Estimate by 6.5%.
Net sales of $610.9 million in the quarter surpassed the Zacks Consensus Estimate of by 5.7%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>