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Are You Looking for a Top Momentum Pick? Why Acuity Brands (AYI) is a Great Choice
ZACKSยท 2024-10-14 17:01
Company Overview - Acuity Brands (AYI) currently holds a Momentum Style Score of B, indicating a positive momentum outlook for the company [1] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [2] Price Performance - AYI shares have increased by 13.64% over the past week, significantly outperforming the Zacks Building Products - Lighting industry, which rose by 2.95% during the same period [3] - Over the last month, AYI's stock price has changed by 19.36%, compared to a mere 0.4% increase in the industry [3] - In the longer term, AYI shares have gained 21.06% over the past quarter and 72.47% over the last year, while the S&P 500 has only moved 4.49% and 34.55%, respectively [4] Trading Volume - AYI's average 20-day trading volume is 311,387 shares, which serves as a bullish indicator when combined with rising stock prices [4] Earnings Estimates - In the past two months, three earnings estimates for AYI have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $16.50 to $16.66 [5] - For the next fiscal year, one estimate has moved upwards, while one has been revised downwards [5] Conclusion - Given the positive price trends and earnings outlook, AYI is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [6]
Acuity Brands (AYI) is a Top-Ranked Momentum Stock: Should You Buy?
ZACKSยท 2024-10-14 14:50
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 [6]. Investment Insights - Acuity Brands has a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating a favorable investment outlook [6]. - The company has a Momentum Style Score of B, with shares increasing by 19.4% over the past four weeks [6]. - For fiscal 2025, three analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.16 to $16.66 per share [6]. - Acuity Brands has an average earnings surprise of 8.2%, suggesting strong performance relative to expectations [6]. Style Scores and Zacks Rank - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist investors in building successful portfolios. Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [4]. - The Style Scores, which include Value, Growth, Momentum, and VGM Scores, are designed to complement the Zacks Rank, helping investors identify stocks with the best chances of outperforming the market [2][3][5].
Acuity Brands: Growth Is Finally Coming Back Online
Seeking Alphaยท 2024-10-09 16:40
Group 1 - The previous investment thought on Acuity Brands, Inc. (NYSE: AYI) was a buy rating, based on the belief that the slowdown in growth was temporary and that recovery would occur as macro conditions improve [1] - The investment approach focuses on long-term investments while incorporating short-term shorts to uncover alpha opportunities, emphasizing bottom-up analysis of individual companies' fundamental strengths and weaknesses [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]
AYI Stock Trades Near 52-Week High: Is it Still Worth Buying?
ZACKSยท 2024-10-07 15:40
Core Viewpoint - Acuity Brands, Inc. (AYI) has demonstrated strong stock performance, reaching a new 52-week high and significantly outperforming its industry and broader market indices [1][2]. Group 1: Stock Performance - AYI's stock increased by 2.9% to close at $306.83, following a peak of $307.25, marking a 28.7% rise over the past three months [1]. - The stock has outperformed the Zacks Building Products - Lighting industry, which gained 27.9%, the Construction sector's 18.8%, and the S&P 500's 2.5% during the same period [1]. Group 2: Strategic Initiatives - The company is focusing on product innovation, enhancing service levels, and integrating technology to optimize offerings and operations [2]. - AYI is exploring new market segments, particularly in the refueling sector, and developing tailored solutions for service stations and convenience stores [3]. Group 3: Cost Management and Financial Performance - AYI's portfolio realignment has enabled strategic price management and improved supply chain productivity, leading to year-over-year margin improvements [4]. - The adjusted operating margin expanded by 120 basis points to 17.3% in Q4 of fiscal 2024, driven by increased gross profit margin [4]. - The company expects adjusted earnings per share (EPS) for fiscal 2025 to be between $16 and $17.50, up from $15.56 in fiscal 2024 [5]. Group 4: Cash Flow and Capital Allocation - AYI reported cash provided by operating activities of $619.2 million, a 7.1% increase year-over-year, and free cash flow rose by 8.6% to $555.2 million [6]. - The company has a strong capital management record, focusing on growth investments and strategic mergers and acquisitions [7]. Group 5: Dividend and Shareholder Value - On January 25, 2024, AYI's board approved a 15% increase in its quarterly dividend, raising it to 15 cents per share [7]. - The company actively repurchases shares, reinforcing its disciplined capital allocation strategy to enhance shareholder value [7]. Group 6: Earnings Estimates - The Zacks Consensus Estimate for AYI's fiscal 2025 and 2026 earnings has increased to $16.66 and $17.95, reflecting growth of 7.1% and 7.7% respectively [8]. Group 7: Valuation - AYI stock is currently slightly overvalued compared to its industry, raising concerns about the sustainability of its price if future performance does not meet expectations [9]. Group 8: Investment Opportunity - Despite high valuation, AYI remains a compelling investment opportunity due to its focus on product innovation, cost-saving initiatives, and strong financials [10].
AYI: Why Acuity Brands Stock is Moving Today
GuruFocusยท 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 Foolยท 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
ZACKSยท 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
ZACKSยท 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]