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Acuity's Q2 Earnings Top Estimates, Sales Miss, Dividend Hiked
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Key Takeaways
Acuity posted Q2 EPS of $4.14, beating estimates, while sales of $1.06B missed expectations.
AYI's AIS segment surged 44.7%, offsetting declines in its core Lighting segment sales.
Acuity raised its quarterly dividend by 18% and boosted margins with improved operating performance.
Acuity Inc. (AYI - Free Report) reported mixed results for the second quarter of fiscal 2026 (ended Feb. 28, 2026), with adjusted earnings topping the Zacks Consensus Estimate but net sales missing the same. However, both metrics increased year over year.
The quarter’s performance was driven by the increased contributions from its Acuity Intelligent Spaces (AIS) segment, which was somewhat pulled back by reduced sales in the Acuity Brands Lighting (ABL) segment. Besides, the integration of QSC with Atrius and Distech aided the quarter’s growth.
Acuity stock inched down 0.8% during today’s pre-market trading session.
Acuity’s Q2 Earnings & Sales Performance
The company reported adjusted earnings per share (EPS) of $4.14, which topped the Zacks Consensus Estimate of $4.01 by 3.4%. The metric also increased 11% from the year-ago reported EPS of $3.73.
Net sales of $1.06 billion missed the consensus mark of $1.08 billion by 1.9% but improved 4.9% from the prior-year quarter’s level.
The Acuity Brands Lighting segment, responsible for the majority of sales, experienced a decline in quarterly sales by 2.8% to $817.4 million. Our estimate for the metric was $856.7 million.
Net sales in the Independent Sales Network inched up 0.2% year over year to $616.7 million. Sales from the Direct Sales Network were down 27.5% from the prior-year period’s level to $70.6 million.
Retail sales of $40.3 million tumbled 1.7% from the prior-year quarter’s level. Sales in the Corporate Accounts channel increased 14.3% from the prior-year quarter to $40.7 million. The Original equipment manufacturer and other channel sales of $49.1 million were down 4.5% from the prior-year period’s level.
The adjusted operating profit in the segment inched up 0.4% from the prior year’s level to $141.8 million. The adjusted operating margin was up 50 basis points (bps) year over year to 17.3%.
Acuity Intelligent Spaces generated net sales of $248.1 million, which was significantly up 44.7% year over year. The reported figure came below our estimate of $250 million.
The adjusted operating profit was $48 million, up 50% from the year-ago period. The adjusted operating margin expanded 60 bps year over year to 19.3%.
AYI’s Operating Highlights
The adjusted operating profit increased 8% year over year to $176 million. The adjusted operating margin of 16.7% was up 50 bps year over year.
Adjusted EBITDA rose 8% to $190.8 million from the year-ago period. The adjusted EBITDA margin expanded 60 bps from the year-ago period to 18.1%.
Acuity’s Financials
As of the fiscal second quarter, Acuity had cash and cash equivalents of $272.5 million compared with $422.5 million at the fiscal 2025-end. Long-term debt was $697.1 million as of Feb. 28, 2026, down from $896.8 million at the fiscal 2025-end.
During the first six months of fiscal 2026, cash provided by operating activities totaled $229.9 million, up from $191.6 million in the prior-year period. Adjusted free cash flow was up 15.4% year over year to $188.1 million in the first six months of fiscal 2026.
During the first six months of fiscal 2026, the company repurchased approximately 318,000 shares of its common stock for $106 million and paid $11.6 million through dividends. Acuity also hiked its quarterly dividend payment by 18% to 20 cents per share (80 cents per share annually).
Here are some companies in the Zacks Business Services sector, which per our model, have the right combination of a positive Earnings ESP and a Zacks Rank of 1, 2 (Buy) or 3, to post an earnings beat in the respective quarters to be reported.
Remitly Global, Inc. (RELY - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 1 at present.
Remitly reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 391.7%. Remitly’s earnings for the first quarter of 2026 are expected to grow 140% from the prior year.
Coherent Corp. (COHR - Free Report) currently has an Earnings ESP of +2.70% and a Zacks Rank of 2.
Coherent’s earnings for the third quarter of fiscal 2026 are expected to increase 53.9% year over year. Coherent reported better-than-expected earnings in each the last four quarters, the average surprise being 7.7%.
EVERTEC, Inc. (EVTC - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 2.
EVERTEC reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.1%. EVERTEC’s earnings for the first quarter of 2026 are expected to increase year over year by 3.5%.
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Acuity's Q2 Earnings Top Estimates, Sales Miss, Dividend Hiked
Key Takeaways
Acuity Inc. (AYI - Free Report) reported mixed results for the second quarter of fiscal 2026 (ended Feb. 28, 2026), with adjusted earnings topping the Zacks Consensus Estimate but net sales missing the same. However, both metrics increased year over year.
The quarter’s performance was driven by the increased contributions from its Acuity Intelligent Spaces (AIS) segment, which was somewhat pulled back by reduced sales in the Acuity Brands Lighting (ABL) segment. Besides, the integration of QSC with Atrius and Distech aided the quarter’s growth.
Acuity stock inched down 0.8% during today’s pre-market trading session.
Acuity’s Q2 Earnings & Sales Performance
The company reported adjusted earnings per share (EPS) of $4.14, which topped the Zacks Consensus Estimate of $4.01 by 3.4%. The metric also increased 11% from the year-ago reported EPS of $3.73.
Net sales of $1.06 billion missed the consensus mark of $1.08 billion by 1.9% but improved 4.9% from the prior-year quarter’s level.
Acuity, Inc. Price, Consensus and EPS Surprise
Acuity, Inc. price-consensus-eps-surprise-chart | Acuity, Inc. Quote
Acuity’s Segment Details
The Acuity Brands Lighting segment, responsible for the majority of sales, experienced a decline in quarterly sales by 2.8% to $817.4 million. Our estimate for the metric was $856.7 million.
Net sales in the Independent Sales Network inched up 0.2% year over year to $616.7 million. Sales from the Direct Sales Network were down 27.5% from the prior-year period’s level to $70.6 million.
Retail sales of $40.3 million tumbled 1.7% from the prior-year quarter’s level. Sales in the Corporate Accounts channel increased 14.3% from the prior-year quarter to $40.7 million. The Original equipment manufacturer and other channel sales of $49.1 million were down 4.5% from the prior-year period’s level.
The adjusted operating profit in the segment inched up 0.4% from the prior year’s level to $141.8 million. The adjusted operating margin was up 50 basis points (bps) year over year to 17.3%.
Acuity Intelligent Spaces generated net sales of $248.1 million, which was significantly up 44.7% year over year. The reported figure came below our estimate of $250 million.
The adjusted operating profit was $48 million, up 50% from the year-ago period. The adjusted operating margin expanded 60 bps year over year to 19.3%.
AYI’s Operating Highlights
The adjusted operating profit increased 8% year over year to $176 million. The adjusted operating margin of 16.7% was up 50 bps year over year.
Adjusted EBITDA rose 8% to $190.8 million from the year-ago period. The adjusted EBITDA margin expanded 60 bps from the year-ago period to 18.1%.
Acuity’s Financials
As of the fiscal second quarter, Acuity had cash and cash equivalents of $272.5 million compared with $422.5 million at the fiscal 2025-end. Long-term debt was $697.1 million as of Feb. 28, 2026, down from $896.8 million at the fiscal 2025-end.
During the first six months of fiscal 2026, cash provided by operating activities totaled $229.9 million, up from $191.6 million in the prior-year period. Adjusted free cash flow was up 15.4% year over year to $188.1 million in the first six months of fiscal 2026.
During the first six months of fiscal 2026, the company repurchased approximately 318,000 shares of its common stock for $106 million and paid $11.6 million through dividends. Acuity also hiked its quarterly dividend payment by 18% to 20 cents per share (80 cents per share annually).
AYI Stock’s Zacks Rank
Acuity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks With the Favorable Combination
Here are some companies in the Zacks Business Services sector, which per our model, have the right combination of a positive Earnings ESP and a Zacks Rank of 1, 2 (Buy) or 3, to post an earnings beat in the respective quarters to be reported.
Remitly Global, Inc. (RELY - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 1 at present.
Remitly reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 391.7%. Remitly’s earnings for the first quarter of 2026 are expected to grow 140% from the prior year.
Coherent Corp. (COHR - Free Report) currently has an Earnings ESP of +2.70% and a Zacks Rank of 2.
Coherent’s earnings for the third quarter of fiscal 2026 are expected to increase 53.9% year over year. Coherent reported better-than-expected earnings in each the last four quarters, the average surprise being 7.7%.
EVERTEC, Inc. (EVTC - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 2.
EVERTEC reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.1%. EVERTEC’s earnings for the first quarter of 2026 are expected to increase year over year by 3.5%.