Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of lighting solution company Acuity Brands (NYSE:AYI) jumped as much as 24% today after the company released earnings.
So what: Fiscal-first-quarter revenue was up 19.5% from a year ago to $574.7 million and easily topped Wall Street's estimate of $540.9 million. On the bottom line, earnings per share of $0.96 topped estimates by $0.12 and management thinks 2014 will see more growth as end markets improve.
Now what: Results may be volatile next year, but CEO Vernon Nagel said forecasts show a mid-single-digit growth rate for renovations and retrofits in North America, which should lead to more growth. Shares are by no means cheap at 27 times forward earnings, but Acuity Brands' growth rate and solid profitability give plenty of upside. I think the stock can move higher as energy efficiency becomes more important, and if shares pull back after this pop it would be a nice entry point.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.