My previous investment thought on Acuity Brands, Inc. (NYSE: AYI ) (published in July) was a buy rating, as I believed the slowdown in growth was temporary and that it should recover eventually as the macro conditions getI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. ...

Acuity Brands, Inc. (AYI) has captured the attention of investors in the market recently with its impressive performance. After hovering around $300.00 per share for the past four trading sessions, the stock reached a new 52-week high of $307.25 on Friday. It then pulled back slightly to close the trading session at $306.83, marking a 2.9% increase from the previous day's closing price of $298.03.Shares of AYI have surged 28.7% over the past three months, outperforming the 27.9% gain in the Zacks Building P ...

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 ...

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, Inc. (AYI) reported solid results in fourth-quarter fiscal 2024 (ended Aug. 31, 2024), with earnings and net sales surpassing the Zacks Consensus Estimate. Earnings beat the consensus mark for the 18th consecutive quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.While the Intelligent Spaces Group or ISG segment saw robust sales growth, the ABL segment showed tepid growth in the quarter. This mixed performance reflects the broader market dynamics, where traditio ...

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]

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]

Increased Fiscal Q4 2024 Net Sales 2% to $1.03B Compared to the Prior Year Reported Fiscal Q4 2024 Diluted EPS of $3.77, up 43% Over the Prior Year; Adjusted Diluted EPS of $4.30, up 8% Over the Prior YearDelivered Fiscal 2024 Net Sales of $3.8B, a 3% Decline Compared to the Prior Year Reported Fiscal 2024 Diluted EPS of $13.44, up 25% Over the Prior Year; Adjusted Diluted EPS of $15.56, up 11% Over the Prior Year Generated $619M in Cash Flow from Operations in Fiscal 2024, up 7% Over the Prior Year ATLANTA ...

Acuity Brands, Inc. (AYI) is scheduled to announce fourth-quarter fiscal 2024 results on Oct. 1, before the opening bell.In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 1.2% and increased 10.7% year over year. The top line, however, missed the consensus mark by 2.7% and decreased 3% from the prior year.Acuity Brands beat earnings expectations in the trailing 17 quarters.How Are Estimates Placed for AYI?For the quarter to be reported, the Zacks Consensus E ...