The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Acuity Brands met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Gross margin expanded, operating margin increased, and net margin dropped.
Acuity Brands reported revenue of $457.7 million. The 12 analysts polled by S&P Capital IQ expected a top line of $456.5 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $416.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.57. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.62 per share on the same basis. GAAP EPS of $0.46 for Q2 were 2.2% higher than the prior-year quarter's $0.45 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 39.7%, 30 basis points better than the prior-year quarter. Operating margin was 10.0%, 110 basis points better than the prior-year quarter. Net margin was 4.3%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $490.0 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $2.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Acuity Brands a green thumbs-up, and three 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 $56.30.
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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.