Please ensure Javascript is enabled for purposes of website accessibility

Acuity Brands Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Acuity Brands (NYSE: AYI) reported earnings on April 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 28 (Q2), Acuity Brands beat expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.

Gross margins contracted, operating margins dropped, net margins expanded.

Revenue details
Acuity Brands reported revenue of $486.7 million. The 14 analysts polled by S&P Capital IQ predicted net sales of $469.2 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $457.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.62. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.61 per share. Non-GAAP EPS of $0.62 for Q2 were 8.8% higher than the prior-year quarter's $0.57 per share. GAAP EPS of $0.57 for Q2 were 24% higher than the prior-year quarter's $0.46 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.0%, 70 basis points worse than the prior-year quarter. Operating margin was 9.3%, 70 basis points worse than the prior-year quarter. Net margin was 5.1%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $513.5 million. On the bottom line, the average EPS estimate is $0.88.

Next year's average estimate for revenue is $2.02 billion. The average EPS estimate is $3.25.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 194 members out of 209 rating the stock outperform, and 15 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 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 hold, with an average price target of $66.25.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Acuity Brands, Inc. Stock Quote
Acuity Brands, Inc.
AYI
$177.86 (1.66%) $2.90

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.