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]

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]

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]

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].

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]

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]

Core Viewpoint - Acuity Brands, Inc. is set to announce its fiscal 2024 fourth-quarter and full-year results on October 1, 2024, with a conference call led by CEO Neil Ashe [1]. Company Overview - Acuity Brands, Inc. (NYSE: AYI) is a leading industrial technology company focused on solving problems related to spaces and lighting through innovative products and services [2]. - The company operates through two main segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG) [2]. - Acuity Brands aims for growth by developing new products and services, enhancing customer efficiencies, and increasing market share [2]. Operational Footprint - The company is headquartered in Atlanta, Georgia, and has operations across North America, Europe, and Asia, supported by over 12,000 employees [3].

Core Viewpoint - Acuity Brands, Inc. (AYI) is experiencing growth driven by innovation in its diversified product portfolio and a focus on the Intelligent Spaces Group (ISG), despite facing economic uncertainties and high costs [1][2] Growth Drivers - Innovation is a key growth driver, with AYI prioritizing initiatives that expand its lighting control solutions and energy-efficient products, enhancing customer benefits and growth prospects [3] - The company emphasizes differentiated product portfolios, including Made-to-Order, Design Select, and Contractor Select, which cater to various market needs and enhance project design efficiency [4] - AYI is expanding into the refueling sector, developing tailored solutions for service stations, convenience stores, and quick-service restaurants, in addition to its existing offerings [5] - The ISG segment is focused on enhancing the intelligence, safety, and sustainability of spaces, with net sales in this segment rising 15% year over year to $75.7 million, driven by higher sales of Distech products [6] - Strategic margin-driven growth initiatives include acquisitions, joint ventures, and cost-saving measures, with an adjusted operating margin of 17.3% in the third quarter of fiscal 2024, expanding 100 basis points from the previous year [7] Headwinds - AYI operates in a volatile business environment influenced by economic factors such as GDP growth and employment levels, which can impact residential and non-residential construction activities [8] - The company reported a decline in total net sales to $968.1 million, down 3% from $1 billion in the prior-year period, primarily due to lower sales in the ABL segment [8] - High costs associated with the innovation of energy-efficient lighting products, particularly in installation, are increasing the company's cost structure [8]

Executive Appointment - Sach Sankpal has been appointed as President of Acuity Brands Lighting and Lighting Controls (ABL), bringing over 30 years of experience in transformation and innovation [1] - Neil Ashe, Chairman, President, and CEO of Acuity Brands, highlighted Sankpal's positive influence on the company's performance and culture since joining two years ago [1] - Trevor Palmer, the current President of ABL, will be leaving the company after a successful tenure, having led the business through several years of transformation [1] Strategic Vision - The company aims to take Acuity to new heights by adopting innovative approaches and creating a unified lighting organization under Sach Sankpal's leadership [2] - This reorganization is expected to enhance end-to-end process connectivity, accelerate growth, and drive productivity [2] Company Overview - Acuity Brands is a market-leading industrial technology company with two main business segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG) [3] - The company focuses on designing, manufacturing, and bringing to market products and services that solve problems in spaces, light, and other areas [3] - Growth is achieved through the development of innovative products and services, including lighting, lighting controls, building management solutions, and location-aware applications [3] - The company is headquartered in Atlanta, Georgia, with operations across North America, Europe, and Asia, and employs approximately 12,000 associates [4] Media and Investor Contacts - Media inquiries can be directed to April Appling, Vice President of Corporate Communications [6] - Investor inquiries can be directed to Charlotte McLaughlin, Vice President of Investor Relations [6]

Executive Appointment - Sach Sankpal has been appointed as President of Acuity Brands Lighting and Lighting Controls (ABL), bringing over 30 years of experience in transformation and innovation [1] - Trevor Palmer, the current President of ABL, will be leaving the company after a successful tenure [1] Strategic Direction - The company aims to connect processes more effectively end-to-end under Sach Sankpal's leadership to accelerate growth and drive productivity [2] - Acuity Brands is focused on doing things differently to take the company to new places [2] Company Overview - Acuity Brands is a market-leading industrial technology company with two business segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG) [3] - The company designs, manufactures, and brings to market products and services that make a valuable difference in people's lives [3] - Growth is achieved through innovative new products and services, customer-focused efficiencies, and aggressive capital deployment [3] Global Operations - Acuity Brands is based in Atlanta, Georgia, with operations across North America, Europe, and Asia [4] - The company is powered by approximately 12,000 dedicated and talented associates [4]