Core Insights - Acuity (AYI) is currently viewed as a more attractive investment option compared to Duolingo, Inc. (DUOL) for value investors seeking undervalued stocks [1] Valuation Metrics - AYI has a forward P/E ratio of 18.52, significantly lower than DUOL's forward P/E of 107.94, indicating that AYI is more reasonably priced relative to its earnings [5] - AYI's PEG ratio stands at 1.85, while DUOL's PEG ratio is higher at 2.25, suggesting AYI offers better value when considering expected earnings growth [5] - AYI's P/B ratio is 4.12, compared to DUOL's P/B of 15.98, further highlighting AYI's relative undervaluation [6] Earnings Outlook - AYI is experiencing an improving earnings outlook, which contributes to its strong Zacks Rank of 1 (Strong Buy), while DUOL holds a Zacks Rank of 2 (Buy) [3][7]

Industry Overview - The Technology Services industry ranks within the top 24% of Zacks Ranked Industries and is expected to outperform the market over the next three to six months, having rallied 32.9% year to date [1] - The industry is mature with strong demand for services, and this momentum is likely to continue into the fourth quarter of 2025 [1][3] Market Trends - The global shift toward digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [3] - Companies are rapidly adopting generative AI, machine learning (ML), blockchain, and data science to gain competitive advantages [3] - There is robust demand for multi-cloud-enabled software solutions as businesses transition from legacy platforms to modern cloud-based infrastructure [3] Company Highlights AppLovin Corp. (APP) - AppLovin is a leading technology platform for mobile app developers, enhancing marketing and monetization efforts [7][8] - The Axon 2.0 AI engine has significantly boosted ad performance, leading to a $10 billion annual run rate in ad spend [9] - AppLovin targets a 20-30% year-over-year growth rate, primarily driven by its gaming segment and AI-driven ad monetization [11] - Expected revenue and earnings growth rates for the current quarter are 15.2% and 63.6%, respectively [12] Skillsoft Corp. (SKIL) - Skillsoft provides digital learning and talent solutions, focusing on a learner-centric approach [13] - Expected revenue and earnings growth rates for the next quarter are -2% and -53.1%, respectively, but earnings estimates have improved over 100% in the last 30 days [14] Acuity Inc. (AYI) - Acuity manufactures lighting fixtures and related components, with a focus on energy efficiency and smart building solutions [15][17] - Expected revenue and earnings growth rates for the current quarter are 19.5% and 12.3%, respectively [17] Byrna Technologies Inc. (BYRN) - Byrna develops non-lethal technology products for personal and professional security [18] - Expected revenue and earnings growth rates for the current quarter are 21.3% and -23.5%, respectively [19] MediaAlpha Inc. (MAX) - MediaAlpha specializes in programmatic technology platforms for vertical search and metasearch [20] - Expected revenue and earnings growth rates for the current quarter are -8.1% and over 100%, respectively [20]

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Acuity Inc. (NYSE:AYI) posted better-than-expected fourth-quarter earnings on Wednesday.It clocked an adjusted EPS of $5.20, beating the analyst consensus estimate of $4.84. The company reported quarterly net sales growth of 17.1% year-over-year to $1.21 billion, compared to the analyst consensus estimate of $1.23 billion."Our fiscal 2025 fourth quarter performance was strong. We grew net sales, expanded our adjusted operating profit and adjusted operating profit margin, and increased our adjusted diluted e ...

Cowen & Co. upgraded NYSE:AYI to "Buy" with a price target increase from $330 to $390.Acuity Brands reported a 17.1% increase in revenue for the fourth quarter, largely due to the acquisition of QSC.The company projects 2026 revenue between $4.7 billion and $4.9 billion and adjusted EPS ranging from $19 to $20.50.Acuity Brands, Inc. (NYSE:AYI) is a leading provider of lighting and building management solutions. The company is known for its innovative products and services that enhance energy efficiency and ...

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Core Insights - Acuity Brands, Inc. reported strong financial performance with an EPS of $5.20, exceeding estimates of $4.70, and revenue of approximately $1.21 billion, surpassing the estimated $1.14 billion [1][6] Financial Performance - In Q4 of fiscal 2025, Acuity achieved net sales of $1.2 billion, reflecting a 17% increase year-over-year, while reported diluted EPS declined by 4% to $3.61, but adjusted diluted EPS rose by 21% to $5.20 [2][6] - For the full fiscal year 2025, net sales reached $4.3 billion, a 13% increase from the previous year, with reported diluted EPS at $12.53, down 7%, and adjusted diluted EPS increasing by 16% to $18.01 [3][6] Financial Health - The company reported cash flow from operations of $601 million during fiscal 2025, indicating strong operational efficiency [4][6] - Acuity's debt-to-equity ratio stands at 0.42, suggesting a moderate level of debt, while the current ratio is approximately 1.99, indicating strong liquidity with nearly twice as many current assets as current liabilities [5][6]

Core Insights - Acuity reported revenue of $1.21 billion for the quarter ended August 2025, reflecting a year-over-year increase of 17.1% and an EPS of $5.20, up from $4.30 in the previous year [1] - The revenue matched the Zacks Consensus Estimate, while the EPS exceeded expectations by 10.64% [1] Financial Performance - Acuity's net sales by channel for Acuity Intelligent Spaces reached $255.2 million, which is a 204.2% increase year-over-year but fell short of the average estimate of $261.99 million [4] - Acuity Brands Lighting (ABL) reported total net sales of $962.4 million, slightly above the average estimate of $958.18 million, marking a year-over-year change of 0.8% [4] - Adjusted operating profit for Acuity Intelligent Spaces was $54.6 million, surpassing the average estimate of $45.89 million [4] - Adjusted operating profit for Acuity Brands Lighting was $193.6 million, exceeding the average estimate of $172.54 million [4] Market Performance - Acuity's shares have returned +3.3% over the past month, compared to a +3.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - U.S. stocks experienced a decline, with the Dow Jones index dropping over 100 points on Wednesday [1] - Acuity Inc. reported better-than-expected fourth-quarter earnings, with an adjusted EPS of $5.20, surpassing the analyst consensus estimate of $4.84 [1] - Acuity's quarterly net sales grew by 17.1% year-over-year to $1.21 billion, slightly below the analyst consensus estimate of $1.23 billion [1] - Acuity's shares increased by 5.3% to $362.54 following the earnings report [1] Company Performance Highlights - Lithium Americas Corp. shares surged by 17.5% to $6.72 after an agreement with GM and the U.S. Department of Energy regarding its DOE loan [4] - Rezolve AI PLC's shares rose by 15.8% to $5.77 after raising its 2025 revenue target to $150 million ARR and setting a $500 million goal for 2026 [4] - The AES Corporation's shares increased by 14.2% to $15.02 amid reports of BlackRock's Global Infrastructure Partners nearing an acquisition [4] - Sunrun Inc. gained 12.7% to $19.49 after Jefferies upgraded the stock from Hold to Buy and raised its price target from $11 to $21 [4] - Plug Power Inc. shares rose by 12.7% to $2.63 following the delivery of its first 10-megawatt GenEco™ electrolyzer array to Galp [4] - Hycroft Mining Holding Corporation's shares jumped by 10.7% to $6.87 [4] - United States Antimony Corporation shares gained 10.3% to $6.87 [4] - Upexi, Inc. increased by 9.7% to $6.33 [4] - Fluence Energy, Inc. rose by 8.3% to $11.70 [4] - Intellia Therapeutics, Inc. shares increased by 8.1% to $18.67 [4] - Standard Lithium Ltd. shares gained 8.1% to $3.6442 [4] - Zeta Global Holdings Corp. rose by 7.4% to $21.34, announcing plans to acquire Marigold's Enterprise business for up to $325 million [4] - Regeneron Pharmaceuticals, Inc. gained 5.6% to $593.71, with third quarter 2025 financial results set to be reported on Oct. 28 [4]

Financial Data and Key Metrics Changes - In fiscal 2025, the company generated net sales of $1.2 billion in Q4, which was $177 million, or 17% above the prior year [16] - Adjusted operating profit for the quarter was $225 million, up $47 million, or 26% from last year [16] - Adjusted diluted earnings per share increased to $5.20, which was an increase of $0.90, or 21% over the prior year [18] Business Line Data and Key Metrics Changes - Acuity Brands Lighting (ABL) delivered sales of $962 million, an increase of $7 million, or 1% versus the prior year [18] - Adjusted operating profit for ABL increased by $22 million to $194 million, with an adjusted operating profit margin of 20.1%, up 210 basis points compared to the prior year [18] - Acuity Intelligent Spaces (AIS) sales for Q4 were $255 million, an increase of $171 million [19] Market Data and Key Metrics Changes - The independent sales network for ABL grew by $25 million, or 4%, while corporate accounts and direct sales network experienced declines [18] - Atrius and Distech combined grew approximately 13%, while QSC grew approximately 15% year-over-year [19] Company Strategy and Development Direction - The company is focused on organic investments for future growth, particularly in underpenetrated verticals such as healthcare [8] - The strategy includes leveraging technology to create impactful experiences and improve productivity [12] - The company aims to grow with the market, take share, and enter new verticals while expanding margins [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver results despite a tepid economic environment, emphasizing a clear growth algorithm [41] - The company does not expect significant market improvement in the near term but remains focused on maintaining performance [41] - For fiscal 2026, the expectation is net sales will be within the range of $4.7 billion to $4.9 billion, with adjusted diluted EPS between $19 and $20.50 [22] Other Important Information - The company has made significant changes to its supply chain to mitigate tariff impacts, reducing exposure to China significantly [54] - A non-cash charge of approximately $31 million was recognized due to de-risking pension plans [17] - The company increased its dividend by 13% and repurchased approximately 436,000 shares at an average price of around $270 [21] Q&A Session Summary Question: Integration of QSC and M&A pipeline - Management is pleased with the integration of QSC and has a consistent pipeline of potential acquisitions to expand the portfolio [25] Question: ABL's sequential ramp and market conditions - Management indicated that ABL's performance is strong and aligned with expectations despite some softness in corporate accounts [27] Question: Key milestones for AIS integration - Management highlighted ongoing organic development and the combination of products from QSC, Distech, and Atrius as key milestones [32] Question: Pricing strategy in ABL - Management noted that pricing actions have been strategic, with increases in the low to mid-single digits to offset tariff impacts [33] Question: Market demand and economic stability - Management does not expect significant improvement in market conditions and emphasizes the company's ability to perform in a challenging environment [41] Question: QSC margins and future expectations - Management is optimistic about QSC's margin expansion and expects continued growth in AIS [52] Question: Cost actions and sourcing changes - Management detailed significant reductions in sourcing from China and ongoing productivity efforts to manage costs [55] Question: Inventory levels and normalization - Management explained that elevated inventory levels are due to higher costs from tariffs and proactive inventory management [82]