The 10-second takeaway
For the quarter ended May 31 (Q3), Acuity Brands beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased significantly. GAAP earnings per share contracted.
Gross margins shrank, operating margins were steady, net margins contracted.
Acuity Brands tallied revenue of $541.5 million. The 13 analysts polled by S&P Capital IQ hoped for sales of $518.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $487.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.97. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.87 per share. Non-GAAP EPS of $0.97 for Q3 were 18% higher than the prior-year quarter's $0.82 per share. GAAP EPS of $0.73 for Q3 were 7.6% lower than the prior-year quarter's $0.79 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.8%, 60 basis points worse than the prior-year quarter. Operating margin was 12.1%, much about the same as the prior-year quarter. Net margin was 5.9%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $568.9 million. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $2.08 billion. The average EPS estimate is $3.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 199 members out of 215 rating the stock outperform, and 16 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Acuity Brands a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Acuity Brands is hold, with an average price target of $73.20.
If you're interested in companies like Acuity Brands, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add Acuity Brands to My Watchlist.