Why Is Acuity Brands (AYI) Up 2.8% Since Last Earnings Report?

Core Viewpoint - Acuity Brands reported strong first-quarter fiscal 2024 results, with earnings and revenues exceeding expectations, despite a decline in sales in the lighting business [2][3]. Financial Performance - Adjusted earnings per share were $3.72, surpassing the consensus estimate of $3.09 by 20.4% and increasing 13.1% from the previous year [3]. - Net sales reached $934.7 million, exceeding the consensus mark of $924.5 million by 1.1%, although this represented a 6.3% decline year-over-year due to lower volumes [3]. Segment Performance - Acuity Brands Lighting and Lighting Controls (ABL) saw net sales decline 7.5% year-over-year to $876.4 million, while the Independent Sales Network and Direct Sales Network also experienced declines [4]. - Retail sales increased by 11.4% to $55.6 million, contrasting with a 15.5% decline in Corporate Accounts sales [4]. - The Intelligent Spaces Group (ISG) generated net sales of $64.2 million, up 13% year-over-year, although adjusted operating profit decreased by 2.7% [5]. Operating Highlights - Adjusted operating profit increased by 9.9% to $153.9 million, with an adjusted operating margin of 16.5%, up 250 basis points year-over-year [6]. Financial Position - At the end of the fiscal first quarter, cash and cash equivalents were $513.3 million, up from $397.9 million at the end of fiscal 2023, while long-term debt remained stable at $495.7 million [7]. - Cash provided by operating activities totaled $190 million, an increase from $186.6 million in the prior-year period, with free cash flow rising 4.2% to $175.4 million [7]. Fiscal 2024 Outlook - For fiscal 2024, Acuity Brands expects net sales between $3.7 billion and $4 billion, compared to $3.95 billion reported in fiscal 2023, with adjusted earnings per share projected between $13 and $14.50 [8]. - Consensus estimates have trended upward, with a 6% shift due to recent changes [8]. Investment Sentiment - Acuity Brands holds a strong Growth Score of A, but a C on the Momentum Score, resulting in an aggregate VGM Score of A [9]. - The stock has a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [10].