HomeMost PopularInvestingUnmasking Acuity Brands (AYI) Q2 Earnings: An Illuminating Outlook for Investors

Unmasking Acuity Brands (AYI) Q2 Earnings: An Illuminating Outlook for Investors

Actionable Trade Ideas

always free

Acuity Brands, Inc. AYI is slated to unveil its second-quarter fiscal 2024 results on Apr 3, before the commencement of trading.

In the preceding quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate by 20.4% and surged 13.1% year over year. The revenue also outperformed the consensus projection by 1.1% despite a 6.3% dip from the previous year.

Acuity Brands has exceeded earnings estimates in the last 15 quarters.

Tracing Estimate Trends

For the upcoming quarter, the Zacks Consensus Estimate for earnings per share has remained steady at $3.13 over the past 60 days. This figure signals a slight uptick of 2.3% from the $3.06 per share recorded in the corresponding quarter of the previous year.

Unveiling Acuity Brands Inc Price and EPS Dynamics

Acuity Brands Inc Price and EPS Surprise

Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote

The consensus estimate for revenues stands at $899.34 million, indicating a 4.7% decline from the figure reported in the same period last year, which was $943.6 million.

Key Factors in Focus

Acuity Brands’ revenues are forecasted to have dropped year over year in the fiscal second quarter due to challenges in the Acuity Brands Lighting (ABL) segment. This segment faces hurdles from tough year-over-year comparisons amidst improving material costs.

Minutely examining the segments for the imminent quarter, our analysis foresees total ABL segment revenues to fall by 6% year over year to $837 million. The decline across various sales channels is poised to impact the segment’s revenues.

Specifically within the ABL segment, we predict decreases of 5.4%, 2.1%, 6.2%, 19.9%, and 6.2% in Independent Sales Network, Direct Sales Network, Retail Sales, Corporate Accounts, and Other revenues, respectively, year over year.

Nevertheless, the company’s commitment to boosting product vitality, enhancing service standards, and leveraging its technological advancements and fresh product innovations is anticipated to mitigate the negative impacts of these challenges.

Acuity Brands has benefitted from its diverse array of forward-looking lighting control solutions and energy-efficient luminaries. The emphasis on Intelligent Spaces Group (ISG) products, designed to provide solutions enhancing intelligence, safety, and sustainability of spaces, is proving advantageous. Our projections foresee ISG segment revenues in the fiscal second quarter to escalate by 16.1% year over year to $67.6 million.

Simultaneously, the upturn in prices and efforts in containing costs are expected to have provided some support to margins in the upcoming quarter. Our projections foresee the adjusted operating margin in the fiscal second quarter to contract by 20 basis points year over year to 13.8%.

Insights from Our Model

Our trusted framework does not definitively forecast an earnings outperformance for Acuity Brands this time. The presence of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings surprise. Unfortunately, this is not the scenario here.

Earnings ESP: The company’s earnings ESP stands at -5.11%. Discover the prime stocks to purchase or offload before their disclosure using our Earnings ESP Filter.

Zacks Rank: Acuity Brands currently upholds a Zacks Rank #3.

Winning Combinations in the Market

According to our model, here are some entities in the Zacks Construction sector well-positioned with the right mix to deliver an earnings beat in the upcoming quarter.

Summit Materials, Inc. SUM boasts an Earnings ESP of +127.27% and a Zacks Rank #3. Witness the comprehensive list of current Zacks #1 Rank stocks here.

SUM has outshined earnings estimates in each of the last four quarters, with an average of 18.2%. Earnings for the upcoming quarter are anticipated to progress by 15.4% year over year.

JELD-WEN Holding, Inc. JELD holds an Earnings ESP of +20.69% and a Zacks Rank #3.

In the preceding four quarters, JELD exceeded earnings projections, with the average positive deviation standing at 116.5%. Earnings for the forthcoming quarter are predicted to shrink by 34.3% year over year.

Installed Building Products Inc. IBP possesses an Earnings ESP of +9.46% and carries a Zacks Rank #1.

IBP has surpassed earnings estimates in three of the last four quarters, with a slight miss on one occasion, averaging at 7.4%. Earnings for the upcoming quarter are forecasted to amplify by 6.1% year over year.

Don’t miss out on any upcoming earnings announcements by keeping an eye on the Zacks Earnings Calendar.

Only $1 to See All Zacks’ Buys and Sells

We’re not kidding.

Several years back, we surprised our members by providing 30-day access to all our recommendations for merely $1. No strings attached to spend any more.

Many have availed this opportunity. Many have not – they speculated there had to be a hitch. True, we have a reason. We desire you to get familiar with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and others. They have already closed 162 positions with double- and triple-digit gains in 2023 alone.

See Stocks Now >>

Looking for the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Acuity Brands Inc (AYI) : Free Stock Analysis Report

Installed Building Products, Inc. (IBP) : Free Stock Analysis Report

Summit Materials, Inc. (SUM) : Free Stock Analysis Report

JELD-WEN Holding, Inc. (JELD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.