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In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 1.2% and increased 10.7% year over year. The top line, however, missed the consensus mark by 2.7% and decreased 3% from the prior year.
Acuity Brands beat earnings expectations in the trailing 17 quarters.
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained stable at $4.13 in the past 60 days. The estimated figure indicates an increase of 4% from the $3.97 per share reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.01 billion, suggesting a 0.2% decline from the year-ago reported figure.
Factors to Shape AYI’s Q4 Results
Acuity Brands’ revenues are anticipated to have decreased year over year in the fiscal fourth quarter due to sluggish performance in the Acuity Brands Lighting (ABL) segment. This segment faces challenges from tough year-over-year comparisons due to sales from an excess backlog last year. However, the company's emphasis on improving product vitality, boosting service levels, and leveraging technological advancements and new product innovations is expected to partially mitigate the negative impact of these challenges.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment revenues to decline 0.2% year over year to $942 million. The decline across the sales channels is likely to have affected the segment’s revenues, barring Retail and Other sales.
Within the ABL segment, we expect Independent Sales Network, Direct Sales Network and Corporate Account revenues to decline 0.1%, 8.4% and 0.5%, respectively, year over year. Retail and Other sales are expected to register 12.2% and 3.4% growth, respectively, in the to-be-reported quarter.
The company has gained from its diversified portfolio of innovative lighting control solutions and energy-efficient luminaries. Its focus on Intelligent Spaces Group (ISG) products, which specialize in providing products and services that enhance the intelligence, safety and sustainability of spaces, bode well. Our model predicts the ISG segment’s revenues in the fiscal fourth quarter to increase 15% year over year to $82.7 million.
Acuity Brands' ongoing efforts to introduce new products and enhance existing ones are central to driving profitability. The company’s portfolio includes Made-to-Order, Design Select, and Contractor Select, catering to different customer needs and contributing to margin improvement. The focus on new verticals, such as refueling and horticulture, also broadens market reach. The company’s cost management, pricing strategies, and productivity improvements are likely to have aided the company in boosting margins. We expect the company’s adjusted operating margin to improve to 17% in the fiscal fourth quarter from 16.1% a year ago.
What Our Model Indicates for AYI
Our proven model does not conclusively predict an earnings beat for Acuity Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Acuity Brands currently has a Zacks Rank #3.
Stocks With the Favorable Combination
According to our model, here are some companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat in the quarter to be reported.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 27.9%. Earnings for the to-be-reported quarter are expected to decline 15.3% year over year.
MI Homes (MHO - Free Report) has an Earnings ESP of +3.11% and a Zacks Rank #2.
MHO’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 4.8%. Earnings for the to-be-reported quarter are expected to grow 2.5% year over year.
Otis Worldwide (OTIS - Free Report) has an Earnings ESP of +0.69% and carries a Zacks Rank #2.
OTIS’ earnings topped the consensus mark in all the last four quarters, the average being 3.9%. Earnings for the to-be-reported quarter are expected to grow 2.1% year over year.
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Acuity Brands Gears Up for Q4 Earnings: Things to Keep in Mind
Acuity Brands, Inc. (AYI - Free Report) is scheduled to announce fourth-quarter fiscal 2024 results on Oct. 1, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 1.2% and increased 10.7% year over year. The top line, however, missed the consensus mark by 2.7% and decreased 3% from the prior year.
Acuity Brands beat earnings expectations in the trailing 17 quarters.
Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote
How Are Estimates Placed for AYI?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained stable at $4.13 in the past 60 days. The estimated figure indicates an increase of 4% from the $3.97 per share reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.01 billion, suggesting a 0.2% decline from the year-ago reported figure.
Factors to Shape AYI’s Q4 Results
Acuity Brands’ revenues are anticipated to have decreased year over year in the fiscal fourth quarter due to sluggish performance in the Acuity Brands Lighting (ABL) segment. This segment faces challenges from tough year-over-year comparisons due to sales from an excess backlog last year. However, the company's emphasis on improving product vitality, boosting service levels, and leveraging technological advancements and new product innovations is expected to partially mitigate the negative impact of these challenges.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment revenues to decline 0.2% year over year to $942 million. The decline across the sales channels is likely to have affected the segment’s revenues, barring Retail and Other sales.
Within the ABL segment, we expect Independent Sales Network, Direct Sales Network and Corporate Account revenues to decline 0.1%, 8.4% and 0.5%, respectively, year over year. Retail and Other sales are expected to register 12.2% and 3.4% growth, respectively, in the to-be-reported quarter.
The company has gained from its diversified portfolio of innovative lighting control solutions and energy-efficient luminaries. Its focus on Intelligent Spaces Group (ISG) products, which specialize in providing products and services that enhance the intelligence, safety and sustainability of spaces, bode well. Our model predicts the ISG segment’s revenues in the fiscal fourth quarter to increase 15% year over year to $82.7 million.
Acuity Brands' ongoing efforts to introduce new products and enhance existing ones are central to driving profitability. The company’s portfolio includes Made-to-Order, Design Select, and Contractor Select, catering to different customer needs and contributing to margin improvement. The focus on new verticals, such as refueling and horticulture, also broadens market reach. The company’s cost management, pricing strategies, and productivity improvements are likely to have aided the company in boosting margins. We expect the company’s adjusted operating margin to improve to 17% in the fiscal fourth quarter from 16.1% a year ago.
What Our Model Indicates for AYI
Our proven model does not conclusively predict an earnings beat for Acuity Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Acuity Brands currently has a Zacks Rank #3.
Stocks With the Favorable Combination
According to our model, here are some companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat in the quarter to be reported.
Dycom Industries (DY - Free Report) has an Earnings ESP of +3.21% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 27.9%. Earnings for the to-be-reported quarter are expected to decline 15.3% year over year.
MI Homes (MHO - Free Report) has an Earnings ESP of +3.11% and a Zacks Rank #2.
MHO’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 4.8%. Earnings for the to-be-reported quarter are expected to grow 2.5% year over year.
Otis Worldwide (OTIS - Free Report) has an Earnings ESP of +0.69% and carries a Zacks Rank #2.
OTIS’ earnings topped the consensus mark in all the last four quarters, the average being 3.9%. Earnings for the to-be-reported quarter are expected to grow 2.1% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.