The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Acuity Brands beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share increased significantly.
Gross margins shrank, operating margins increased, and net margins expanded.
Acuity Brands reported revenue of $474 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $467 million. Sales were 12% higher than the prior-year quarter's $425 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.74. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share on the same basis. GAAP EPS of $0.70 for Q1 were 25% higher than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP 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 11.2%, 50 basis points better than the prior-year quarter. Net margin was 6.3%, 60 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $450 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $1.9 billion. The average EPS estimate is $2.95.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 200 members out of 217 rating the stock outperform, and 17 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 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 outperform, with an average price target of $45.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.