Core Viewpoint - Acuity Brands, Inc. is set to announce its third-quarter fiscal 2024 results, with expectations of stable earnings per share and slight revenue growth despite challenges in its Lighting segment [1][2][3]. Financial Performance - In the last reported quarter, Acuity Brands' adjusted earnings exceeded the Zacks Consensus Estimate by 8.7% and increased by 10.5% year over year, while revenue decreased by 4% from the prior year [1]. - The Zacks Consensus Estimate for the upcoming quarter's earnings per share is $4.20, reflecting a 12% increase from $3.75 reported in the same quarter last year [2]. - Revenue expectations for the upcoming quarter are pegged at $1.02 billion, indicating a 1.6% growth from the previous year's $1 billion [2]. Segment Analysis - The Acuity Brands Lighting (ABL) segment is anticipated to see a year-over-year revenue decline of 1.6% to $925.3 million due to tough comparisons from last year's excess backlog [3][4]. - Within the ABL segment, Independent Sales Network, Direct Sales Network, and Other revenues are expected to decline by 2.2%, 1.9%, and 1.3%, respectively, while Retail and Corporate Accounts sales are projected to grow by 3.2% and 1.4% [4]. - The Intelligent Spaces Group (ISG) segment is expected to see a revenue increase of 16.3% year over year to $76.5 million, driven by innovative lighting control solutions [4]. Margin Expectations - Increased prices and cost containment efforts are likely to positively impact margins, with adjusted operating margin expected to grow by 50 basis points year over year to 16.8% [4]. 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 [5].

Core Insights - Acuity Brands (AYI) is projected to announce quarterly earnings of $4.20 per share, reflecting a 12% year-over-year increase, with revenues expected to reach $1.02 billion, a 1.6% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [1] Revenue Projections - The consensus estimate for Acuity Brands Lighting (ABL) revenues stands at $918.92 million, suggesting a year-over-year decline of 2.3% [2] - Revenues for the Intelligent Spaces Group (ISG) are projected to reach $76.42 million, indicating a year-over-year increase of 16.1% [2] Profit Estimates - Analysts expect the adjusted operating profit for the Intelligent Spaces Group to be approximately $14.25 million, up from $12.80 million reported in the same quarter last year [2] - The adjusted operating profit for Acuity Brands Lighting is anticipated to be $161.47 million, compared to $159.70 million in the same quarter last year [3] Stock Performance - Over the past month, Acuity Brands shares have recorded a return of -9.2%, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - Based on its Zacks Rank 3 (Hold), Acuity Brands is expected to perform in line with the overall market in the upcoming period [3]

Group 1: Undervalued Stocks Overview - Undervalued stocks can drive significant portfolio returns despite being overlooked due to inherent flaws or fundamental issues [1] - The best undervalued stocks to buy include mixed-cap stocks that may emerge as top performers in the latter half of 2024 [1] Group 2: Rumble (RUM) - Rumble is building its ecosystem and has over 40 million monthly active users, indicating a sticky audience [2] - The company is expanding its advertising ecosystem and has secured exclusive deals with notable creators [2] - Rumble's pivot towards cloud services and data hosting is enhancing its market position [3] Group 3: BuzzFeed (BZFD) - BuzzFeed is facing challenges due to a history of scandals and declining sales, prompting activist investor Vivek Ramaswamy to acquire a 7.7% stake [5][6] - Ramaswamy is engaging with management to explore operational changes aimed at maximizing shareholder value [5] - The investment reflects a strategic move to improve media quality and transparency [6] Group 4: Upwork (UPWK) - Upwork has introduced new fees, which may signal a potential buyout bid despite recent profitability [7][8] - Historical rumors of a merger with Microsoft indicate Upwork's interest in strategic partnerships [8] - The introduction of fees could either harm client relations or serve as a tactic to boost valuation metrics [8] Group 5: Tilray Brands (TLRY) - Tilray's stock has decreased nearly 25% since January, yet it remains a strong contender in the cannabis sector [9] - The acquisition of brands from Anheuser-Busch has doubled Tilray's alcohol sales, diversifying its revenue streams [9][10] - Tilray is seeking $250 million for strategic acquisitions, presenting a buying opportunity for long-term investors [10] Group 6: Stem (STEM) - Stem operates at the intersection of sustainable energy and AI, with its software optimizing energy distribution [11] - The company is considered a penny stock but has potential for significant growth similar to past AI stocks [12] - Stem is progressing with completed projects, although it faces challenges in achieving profitability [12] Group 7: Tesla (TSLA) - Tesla remains underestimated despite significant corporate developments, including a shareholder vote on executive compensation [13][14] - The company continues to demonstrate long-term growth potential, supported by analysts' projections [13] - Overcoming governance challenges enhances Tesla's market confidence and solidifies its status as an investment opportunity [14] Group 8: Acuity Brands (AYI) - Acuity Brands is a leading lighting company with a strong track record of nearly 10% compounded annual growth in earnings [15] - The company has expanded through acquisitions and maintains a resilient market presence [15] - Acuity is positioned as a reliable long-term investment option due to its underestimated status [15]

Core Viewpoint - The article discusses three recommended brand stocks for long-term investment: Constellation Brands, Acuity Brands, and Kontoor Brands, highlighting their market performance and financial metrics [1]. Group 1: Constellation Brands (STZ) - Constellation Brands has a market capitalization of $48.08 billion and is known for its beer products, including Corona Extra and Modelo Especial [2]. - The company has diversified its portfolio to include seltzers, ready-to-drink products, wines, and spirits, and made a significant investment of $4 billion in Canopy Growth in 2018, which has since decreased in value to $190 million as of April 2024 [2][3]. - Analysts are optimistic about STZ stock, with 21 out of 26 rating it a "Buy" and a target price of $300, representing a 17% increase from a year ago [3]. Group 2: Acuity Brands (AYI) - Acuity Brands has shown significant recovery, with its stock up 52% in the past eight months after a two-year struggle [4]. - The company reported Q2 2024 revenues of $906 million, a 4% decline year-over-year, but an adjusted operating profit increase of 6% to $118 million and an 11% rise in adjusted earnings per share to $3.38 [4][5]. - Acuity's free cash flow reached $504.2 million, yielding 6.5%, which is considered fair value [5]. Group 3: Kontoor Brands (KTB) - Kontoor Brands has a market capitalization of $3.81 billion and has seen its shares rise over 10.6% year-to-date and 148% over the past five years [6]. - The company, known for its denim brands like Lee and Wrangler, offers a dividend yield of nearly 3%, significantly higher than the S&P 500 average of 1.3% [6]. - Kontoor's Q1 2024 results exceeded expectations, with a revenue forecast of $2.6 billion, flat year-over-year, and an EPS guidance increase to $4.75 [7].

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ATLANTA, May 30, 2024 (GLOBE NEWSWIRE) -- Acuity Brands, Inc. (NYSE:AYI) (the "Company") today announced that it is planning to release its fiscal 2024 third quarter results on Thursday, June 27, 2024, at 6:00 a.m. (EST), followed by a conference call at 8:00 a.m. (EST). Neil Ashe, Chairman, President, and Chief Executive Officer of Acuity Brands will lead the call. The webcast, earnings release, and supplemental presentation can be accessed via the Investor Relations section of the Company's website at www ...

ATLANTA, May 30, 2024 (GLOBE NEWSWIRE) -- Acuity Brands, Inc. (NYSE: AYI) (the “Company”) today announced that it is planning to release its fiscal 2024 third quarter results on Thursday, June 27, 2024, at 6:00 a.m. (EST), followed by a conference call at 8:00 a.m. (EST). Neil Ashe, Chairman, President, and Chief Executive Officer of Acuity Brands will lead the call. The webcast, earnings release, and supplemental presentation can be accessed via the Investor Relations section of the Company's website at ww ...

Investors might want to bet on Acuity Brands (AYI) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a chan ...

Company Overview - Acuity Brands, Inc. is headquartered in Atlanta, GA, and is the parent company of Acuity Brands Lighting, Inc. It manufactures and distributes lighting fixtures and related components, including luminaries, lighting controls, and integrated systems designed for energy efficiency and comfort in various applications [7]. Investment Ratings - Acuity Brands has a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating a favorable investment outlook [7][8]. - The company has a Value Style Score of B, supported by a forward P/E ratio of 16.64, making it attractive for value investors [7]. Earnings Estimates - In the last 60 days, four analysts have revised their earnings estimates upwards for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.81 to $15.60 per share [7]. - Acuity Brands has an average earnings surprise of 11%, suggesting a strong performance relative to expectations [7].

Company Performance - Acuity Brands (AYI) has gained approximately 24.2% year-to-date, significantly outperforming the average gain of 8.8% in the Construction sector [2] - The Zacks Consensus Estimate for AYI's full-year earnings has increased by 5.5% over the past 90 days, indicating improving analyst sentiment [2] - Acuity Brands holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook for the stock [1] Industry Comparison - Acuity Brands is part of the Building Products - Lighting industry, which has seen a year-to-date gain of about 22.8%, indicating strong performance relative to its peers [3] - The AZEK Company, another stock in the Construction sector, has a year-to-date return of 21.6% and a Zacks Rank of 2 (Buy), showcasing competitive performance within the sector [2][3] - The Building Products - Air Conditioner and Heating industry, to which The AZEK Company belongs, is ranked 18 and has gained 12.2% year-to-date, which is lower than the performance of Acuity Brands' industry [3]