Acuity Brands (AYI) to Report Q3 Earnings: Factors to Note

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].