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AYI: Why Acuity Brands Stock is Moving Today
GuruFocus· 2024-10-04 15:26
The stock of Acuity Brands (AYI, Financial) saw an upswing today as its price reached $303.79, marking a 1.93% increase. This boost comes on the heels of the company releasing impressive fiscal fourth-quarter 2024 results, fostering strong investor confidence.Acuity Brands, with its recent performance, continues to capture attention in the equity market. The company reported revenues of $1.03 billion and an adjusted earnings per share (EPS) of $4.30, exceeding analyst expectations. The year-over-year increa ...
Why Shares of Acuity Brands Are Soaring This Week
The Motley Fool· 2024-10-04 15:10
Between the company's strong recent performance and its encouraging outlook, investors are excited about Acuity Brands stock.Starting off October on an auspicious note, shares of Acuity Brands (AYI 1.87%) raced out of the gate to kick begin the new month. The lighting and building management solutions provider reported strong fiscal fourth-quarter 2024 financial results on Tuesday that led investors to believe that it was a bright idea to click the buy button.According to data provided by S&P Global Market ...
Acuity Brands' Q4 Earnings & Sales Top Estimates, Stock Up
ZACKS· 2024-10-01 17:25
Core Insights - Acuity Brands, Inc. (AYI) reported strong fourth-quarter fiscal 2024 results, with earnings and net sales exceeding the Zacks Consensus Estimate, marking the 18th consecutive quarter of earnings beats [1][2] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $4.30, surpassing the consensus estimate of $4.19 by 2.6%, and increased 8.3% from the previous year's EPS of $3.97 [2] - Net sales reached $1.03 billion, beating the consensus mark of $1.01 billion by 2.3%, and improved 2.2% from the prior-year quarter [2] Segment Performance - The ABL segment saw a modest sales increase of 1.1% to $955 million, while the Independent Sales Network and Direct Sales Network reported slight increases of 0.2% [3] - Retail sales in the ABL segment declined 8.6% year over year, while Corporate Accounts channel sales increased 24.6% [3] - The Intelligent Spaces Group (ISG) generated net sales of $83.9 million, up 16.7% year over year, with adjusted operating profit rising 51.4% to $21.5 million [4] Operating Highlights - Adjusted operating profit increased 10% year over year to $178.5 million, with an adjusted operating margin of 17.3%, up 120 basis points [5] - Adjusted EBITDA rose 9.3% to $191.3 million, with an adjusted EBITDA margin expanding 120 basis points to 18.5% [5] Fiscal Year Overview - For the full fiscal year 2024, net sales declined 2.8% to $3.84 billion, while adjusted operating profit increased 7.1% to $639.6 million [6] - The ABL segment's net sales decreased 4.0% to $3.57 billion, but adjusted operating profit rose 5.7% to $624.2 million [7] - ISG reported net sales of $291.9 million for fiscal 2024, a 15.5% increase, with adjusted operating profit up 26.5% to $63.4 million [7] Financial Position - At the end of fiscal 2024, Acuity Brands had cash and cash equivalents of $845.8 million, up from $397.9 million at the end of fiscal 2023 [8] - Long-term debt slightly increased to $496.2 million from $495.6 million [8] - Cash provided by operating activities totaled $619.2 million, up 7.1% from the previous year, with free cash flow increasing 8.6% to $555.2 million [8]
Acuity Brands(AYI) - 2024 Q4 - Earnings Call Transcript
2024-10-01 14:30
Financial Data and Key Metrics - Net sales for Q4 2024 were $1 billion, a 2% increase YoY, driven by growth in both the lighting and spaces businesses [18] - Adjusted operating profit increased by $16 million YoY, with adjusted operating profit margin expanding to 17.3%, a 120 basis points improvement [18] - Adjusted diluted earnings per share for Q4 2024 were $4.30, an 8% increase YoY [19] - Full-year operating cash flow for fiscal 2024 was $619 million, a $41 million increase over fiscal 2023 [20] - The company ended the year with $846 million in cash [20] Business Line Performance - In the ABL (lighting) business, net sales increased by $11 million (1%) to $955 million, with adjusted operating profit margin reaching 18%, a 120 basis points improvement [19] - The Intelligent Spaces Group (ISG) saw net sales grow by 17% to $84 million, with adjusted operating profit margin exceeding 25% [19] - The company launched HOLOBAY by Holophane, a high bay lighting product for industrial environments, which is lighter and more configurable than alternatives [7][8] - The company also won recognition for several lighting solutions, including the Cyclone Crosswalk and Hydrel Tierra, in the 2024 Illuminating Engineering Society Progress report [9] Market Performance - In the refueling market, the company developed a new line of tailored product solutions, entering a vertical where it previously had no presence [10][42] - In the horticulture vertical, the company built a product portfolio through both organic and inorganic development [10] - The ISG business expanded its addressable market, particularly in France, where its products were used in several high-profile facilities during the summer [12] Strategy and Industry Competition - The company aims to grow its lighting business at a mid-single-digit rate over the long term, driven by market growth, market share gains, and entry into new verticals [14] - The company expects to add 50 to 100 basis points of adjusted operating profit margin annually in the lighting business [14] - The ISG business is focused on expanding its addressable market by leveraging disruptive technologies and delivering end-user outcomes [15] - The company has a pipeline of internal development and small-to-medium-sized acquisitions to support its vision of data interoperability [15] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow in fiscal 2025, with ABL expected to deliver low-to-mid-single-digit sales growth, and ISG expected to grow in the low-to-mid-teens [21] - The company expects full-year fiscal 2025 net sales to be in the range of $3.9 billion to $4.1 billion, with adjusted diluted earnings per share between $16 and $17.50 [21] - Management highlighted the company's strong cash position and its ability to invest in growth, increase dividends, and repurchase shares [26][28] Other Important Information - The company repurchased 454,000 shares at an average price of $194 per share, totaling $89 million [20] - Since Q4 2020, the company has repurchased approximately 9.5 million shares, representing about 24% of the then-outstanding shares [20] - The company increased its dividend per share by 15% [20] Q&A Session Summary Question: Current market conditions and ABL business trends [23] - Management noted that the ABL business returned to growth in Q4 and expressed confidence in fiscal 2025, expecting a strong calendar year 2025 [24] Question: Capital allocation priorities [25] - The company has a strong cash position and plans to continue investing in growth, increasing dividends, and repurchasing shares [26][28] - The company also has a pipeline of small-to-medium-sized acquisitions, with a focus on ISG [28] Question: Design Select adoption and trends [31] - The Design Select portfolio has received positive feedback from distributors and agents, with demand for more product families to be included [32][33] Question: Data center projects and ISG growth [34] - The ISG business saw strong growth in Q4, driven by large data center projects, and expects continued growth in this vertical [35] Question: Miscellaneous expense breakdown [36] - The $8 million miscellaneous expense was primarily due to foreign currency movements, particularly related to Distech's cash generation and lease liabilities in Mexico [37] Question: Outlook for calendar year 2025 and lighting growth algorithm [39] - Management expects a strong calendar year 2025, driven by a buildup of projects in the pipeline [40] - The lighting growth algorithm includes market growth, market share gains, and entry into new verticals, with a focus on strategic pricing [42][43] Question: East Coast port situation and inventory management [44] - The company has minimal exposure to East Coast ports, with most products coming through West Coast ports, and does not expect material impacts from the current situation [45] Question: Independent sales network trends and growth outlook [47] - The independent sales network, which represents about 60% of the lighting business, is expected to contribute to mid-single-digit sales growth in fiscal 2025 [48][50] Question: Gross margin and operating margin outlook [51] - The company expects to continue expanding gross margins and leveraging operating expenses, with a target of 50 to 100 basis points of adjusted operating profit margin improvement annually [52] Closing Remarks [55] - Management expressed confidence in the company's ability to continue growing its lighting and ISG businesses, expanding margins, and delivering strong cash generation for shareholders [55]
Acuity Brands (AYI) Q4 Earnings and Revenues Beat Estimates
ZACKS· 2024-10-01 12:11
Company Performance - Acuity Brands reported quarterly earnings of $4.30 per share, exceeding the Zacks Consensus Estimate of $4.19 per share, and up from $3.97 per share a year ago, representing an earnings surprise of 2.63% [1] - The company achieved revenues of $1.03 billion for the quarter ended August 2024, surpassing the Zacks Consensus Estimate by 2.32% and compared to $1.01 billion in the same quarter last year [1] - Over the last four quarters, Acuity Brands has consistently surpassed consensus EPS estimates four times and revenue estimates three times [1] Stock Performance - Acuity Brands shares have increased approximately 34.5% since the beginning of the year, outperforming the S&P 500's gain of 20.8% [2] - The current consensus EPS estimate for the upcoming quarter is $3.88 on revenues of $954.45 million, and for the current fiscal year, it is $16.48 on revenues of $3.98 billion [4] Industry Outlook - The Building Products - Lighting industry, to which Acuity Brands belongs, is currently ranked in the top 5% of over 250 Zacks industries, indicating a favorable outlook [5] - Empirical research suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5]
Acuity Brands(AYI) - 2024 Q4 - Annual Results
2024-10-01 11:35
Financial Performance Overview - Q4 2024 net sales increased by 2% to $1.03B compared to the prior year[1] - Full-year 2024 net sales declined 3% to $3.8B, with diluted EPS up 25% to $13.44 and adjusted diluted EPS up 11% to $15.56[1][5] - Net sales for the three months ended August 31, 2024, increased by 2.2% to $1,032.3 million compared to $1,010.4 million in the same period in 2023[29] - Net sales increased by 2.2% to $1,032.3 million in Q3 2024 compared to $1,010.4 million in Q3 2023[41] - Net sales decreased by 2.8% to $3,841.0 million in 2024 compared to $3,952.2 million in 2023[46] Earnings and Profitability - Q4 2024 diluted EPS rose 43% to $3.77, while adjusted diluted EPS increased 8% to $4.30[3] - Q4 2024 operating profit increased to $157.0M, representing 15.2% of net sales, up 430 basis points year-over-year[2] - Full-year 2024 operating profit rose to $553.3M, representing 14.4% of net sales, up 240 basis points year-over-year[4] - Gross profit for the three months ended August 31, 2024, rose to $488.7 million from $442.7 million in 2023, reflecting improved profitability[29] - Net income for the three months ended August 31, 2024, increased to $118.9 million from $82.9 million in 2023, showing significant growth[29] - Gross profit (GAAP) rose by 10.4% to $488.7 million, with gross margin improving by 350 basis points to 47.3%[41] - Adjusted operating profit (Non-GAAP) grew by 10.0% to $178.5 million, with operating margin increasing by 120 basis points to 17.3%[41] - Net income (GAAP) surged by 43.4% to $118.9 million, with net margin expanding by 330 basis points to 11.5%[41] - Adjusted EBITDA (Non-GAAP) increased by 9.3% to $191.3 million, with EBITDA margin improving by 120 basis points to 18.5%[41] - Gross profit (GAAP) increased by 4.0% to $1,781.7 million in 2024 from $1,713.2 million in 2023[46] - Adjusted gross profit (Non-GAAP) rose by 3.2% to $1,781.7 million in 2024 from $1,726.2 million in 2023[46] - Operating profit (GAAP) increased by 16.9% to $553.3 million in 2024 from $473.4 million in 2023[46] - Adjusted operating profit (Non-GAAP) grew by 7.1% to $639.6 million in 2024 from $597.4 million in 2023[46] - Net income (GAAP) increased by 22.1% to $422.6 million in 2024 from $346.0 million in 2023[46] - Adjusted net income (Non-GAAP) rose by 8.2% to $489.1 million in 2024 from $452.0 million in 2023[46] - Diluted earnings per share (GAAP) increased by 24.9% to $13.44 in 2024 from $10.76 in 2023[46] - Adjusted diluted earnings per share (Non-GAAP) grew by 10.7% to $15.56 in 2024 from $14.05 in 2023[46] - EBITDA (Non-GAAP) increased by 13.7% to $635.2 million in 2024 from $558.8 million in 2023[46] Segment Performance - ABL segment Q4 2024 net sales grew 1.1% to $955.0M, with operating profit up to $161.5M, representing 16.9% of net sales[6] - ISG segment Q4 2024 net sales surged 16.7% to $83.9M, with operating profit reaching $16.7M, representing 19.9% of net sales[8] - ISG full-year 2024 net sales grew 15.5% to $291.9M, with operating profit reaching $43.6M, representing 14.9% of net sales[9] - ABL segment net sales for the three months ended August 31, 2024, increased by 1.1% to $955.0 million compared to $944.2 million in 2023[36] - ISG segment net sales for the three months ended August 31, 2024, grew by 16.7% to $83.9 million from $71.9 million in 2023[36] - ABL segment net sales grew by 1.1% to $955.0 million, with operating profit (GAAP) rising by 37.1% to $161.5 million[42] - ISG segment net sales surged by 16.7% to $83.9 million, with operating profit (GAAP) jumping by 77.7% to $16.7 million[43] - Adjusted operating profit margin (Non-GAAP) for ABL increased by 120 basis points to 18.0%[42] - Adjusted operating profit margin (Non-GAAP) for ISG expanded by 590 basis points to 25.6%[43] Cash Flow and Shareholder Returns - Full-year 2024 cash flow from operations increased 7% to $619M[10] - The company repurchased approximately 454,000 shares for $89M during fiscal 2024[10] - Net cash provided by operating activities for the year ended August 31, 2024, increased to $619.2 million from $578.1 million in 2023[32] - Dividends declared per share for the three months ended August 31, 2024, increased to $0.15 from $0.13 in 2023[30] Balance Sheet and Liquidity - Total assets as of August 31, 2024, grew to $3,814.6 million from $3,408.5 million in 2023, indicating strong asset growth[26] - Cash and cash equivalents as of August 31, 2024, surged to $845.8 million from $397.9 million in 2023, reflecting strong liquidity[26]
Acuity Brands Reports Fiscal 2024 Fourth-Quarter and Full-Year Results
GlobeNewswire News Room· 2024-10-01 10:00
Core Insights - Acuity Brands, Inc. reported a 2% increase in net sales for Q4 2024, reaching $1.03 billion compared to the prior year [1] - The company achieved a diluted EPS of $3.77 for Q4 2024, marking a 43% increase year-over-year [3] - For the full fiscal year 2024, net sales totaled $3.84 billion, a decline of 2.8% from $3.95 billion in fiscal 2023 [4] Financial Performance - Q4 2024 operating profit was $157 million, up $47.3 million from the previous year, with an operating profit margin of 15.2%, an increase of approximately 430 basis points [2] - Adjusted operating profit for Q4 2024 was $178.5 million, reflecting a year-over-year increase of $16.2 million, with a margin of 17.3% [2] - Full-year operating profit for 2024 was $553.3 million, an increase of $79.9 million, with a margin of 14.4%, up 240 basis points from the prior year [4] Earnings and Cash Flow - Full-year diluted EPS was $13.44, a 25% increase compared to the prior year, while adjusted diluted EPS was $15.56, up 10.7% [5] - The company generated $619 million in cash flow from operations for fiscal 2024, a 7% increase from the previous year [10] Segment Performance - Acuity Brands Lighting and Lighting Controls (ABL) reported Q4 net sales of $955 million, a 1.1% increase year-over-year, with an operating profit of $161.5 million [6] - The Intelligent Spaces Group (ISG) achieved Q4 net sales of $83.9 million, a significant increase of 16.7% compared to the prior year [8] Capital Allocation - During fiscal 2024, the company repurchased approximately 454,000 shares for about $89 million [10] - Cash and cash equivalents at the end of fiscal 2024 were $845.8 million, up from $397.9 million the previous year [20]
Acuity Brands Gears Up for Q4 Earnings: Things to Keep in Mind
ZACKS· 2024-09-26 15:36
Core Viewpoint - Acuity Brands, Inc. is set to announce its fourth-quarter fiscal 2024 results on October 1, with expectations of a mixed performance in earnings and revenues compared to the previous year [1][2]. Earnings and Revenue Estimates - The Zacks Consensus Estimate for earnings per share is stable at $4.13, reflecting a 4% increase from $3.97 in the same quarter last year [2]. - Revenue expectations are pegged at $1.01 billion, indicating a slight decline of 0.2% year over year [2]. Factors Influencing Q4 Results - Revenue decline is anticipated due to sluggish performance in the Acuity Brands Lighting (ABL) segment, which is facing tough year-over-year comparisons [3]. - ABL segment revenues are predicted to decrease by 0.2% year over year to $942 million, influenced by declines across various sales channels [3][4]. Segment Performance - Within the ABL segment, Independent Sales Network, Direct Sales Network, and Corporate Account revenues are expected to decline by 0.1%, 8.4%, and 0.5%, respectively [4]. - Retail and Other sales are projected to grow by 12.2% and 3.4%, respectively, in the upcoming quarter [4]. - The Intelligent Spaces Group (ISG) segment is expected to see a revenue increase of 15% year over year to $82.7 million [4]. Profitability Drivers - The company’s focus on new product introductions and enhancements is crucial for driving profitability, with a diverse portfolio catering to various customer needs [5]. - Cost management, pricing strategies, and productivity improvements are likely to contribute to an increase in adjusted operating margin to 17% from 16.1% a year ago [5]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Acuity Brands, as the earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 [6].
Ahead of Acuity Brands (AYI) Q4 Earnings: Get Ready With Wall Street Estimates for Key Metrics
ZACKS· 2024-09-26 14:15
Core Viewpoint - Acuity Brands is expected to report quarterly earnings of $4.13 per share, reflecting a 4% increase year-over-year, while revenues are forecasted at $1.01 billion, indicating a slight decrease of 0.2% compared to the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] - Analysts expect revenues from Acuity Brands Lighting (ABL) to be $939.44 million, a decrease of 0.5% from the year-ago quarter [2] - The Intelligent Spaces Group (ISG) is projected to generate revenues of $81.38 million, representing a 13.2% increase year-over-year [2] - The consensus estimate for adjusted operating profit from ISG is $15.92 million, up from $14.20 million reported in the same quarter last year [2] Group 2: Operating Profit Estimates - Adjusted operating profit for Acuity Brands Lighting is estimated at $169.59 million, compared to $158.70 million in the previous year [3] Group 3: Stock Performance - Acuity Brands shares have returned +7.3% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.7% change [3] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [3]
Acuity Brands: Inching Closer To An Upgrade As Earnings Near
Seeking Alpha· 2024-09-22 15:09
Group 1 - The management team at Acuity Brands announced financial results for the second quarter of the 2024 fiscal year [1] - The report highlights the company's performance and strategic direction within the industry [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers have access to a stock model account, cash flow analyses of exploration and production firms, and live discussions about the sector [1]