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Yahoo
27-06-2025
- Business
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Acuity Inc (AYI) Q3 2025 Earnings Call Highlights: Robust Growth and Strategic Advancements
Net Sales: $1.2 billion, up 22% from the prior year. Adjusted Operating Profit: $222 million, an increase of 33% from last year. Adjusted Operating Profit Margin: 18.8%, up 150 basis points from the prior year. Adjusted Diluted Earnings Per Share: $5.12, up 23% over the prior year. ABL Sales: $923 million, a 3% increase from the prior year. ABL Adjusted Operating Profit Margin: 18.8%, up 80 basis points compared to the prior year. Acuity Intelligent Spaces Sales: $264 million, with Atrius and Distech combined growing 21%. Intelligent Spaces Adjusted Operating Profit Margin: 23.6%. Cash Flow from Operations: Approximately $400 million fiscal year-to-date. Share Repurchase: Approximately 344,000 shares repurchased for around $90 million. Dividend Increase: 13% increase in dividend. Warning! GuruFocus has detected 7 Warning Signs with CJREF. Release Date: June 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Acuity Inc (NYSE:AYI) reported strong financial performance in the third quarter of fiscal 2025, with net sales increasing by 22% year-over-year to $1.2 billion. The company expanded its adjusted operating profit margin by 150 basis points to 18.8%, driven by improvements in both business segments. Acuity Inc (NYSE:AYI) successfully managed its supply chain to mitigate the impact of evolving tariff policies, resulting in accelerated orders and backlog growth. The electronics portfolio saw significant product rollouts, including the SensorSwitch AIR and Animate Controller by nLight, enhancing market competitiveness. Acuity Inc (NYSE:AYI) demonstrated strong cash flow generation and effective capital allocation, including share repurchases and dividend increases. The company faced challenges from evolving tariff policies, which required strategic pricing actions and could impact future margins. There was evidence of order acceleration in the third quarter, which may lead to a normalization of performance in the fourth quarter. Acuity Inc (NYSE:AYI) incurred a $30 million special charge related to productivity efforts, including brand elimination and facility reorganization. The ProAudio segment within QSC is heavily impacted by tariffs, affecting its financial performance. The horticulture vertical is performing slower than expected, impacting growth in that segment. Q: Can you explain the significant improvement in QSC's margins this quarter? A: Karen Holcom, CFO, explained that the improvement in QSC's margins was due to strong top-line growth and the adoption of Acuity's productivity tools. The integration of QSC has been successful, with their performance aligning with Acuity's strategic and cultural goals. The margin improvement was driven by better, smarter, faster productivity tools and mitigating additional expenses. Q: How did the accelerated orders in Q3 impact your expectations for Q4 and beyond? A: Neil Ashe, CEO, noted that there was some order acceleration in Q3, which positively impacted results. The expectation is that the combination of Q3 and Q4 will yield the anticipated results for the second half of fiscal 2025. The company plans to be conservative in its future planning to ensure stable outcomes. Q: What factors contributed to the strong gross margin of 50% this quarter? A: Neil Ashe highlighted that the strong gross margin was due to top-line growth in ABL, improvements in product vitality, service, technology, and productivity, as well as the increased contribution from intelligent spaces. The tariff impact was minimal in Q3, but it is expected to affect margins in the near term. Q: How are you managing the impact of tariffs on your business? A: Neil Ashe stated that Acuity has taken dynamic actions to manage the impact of tariffs, including supply chain changes and pricing actions to cover the dollar impact. The company is confident in its ability to handle these changes, although there will be some margin impact moving forward. Q: Can you provide an update on the progress of entering new verticals in the ABL market? A: Neil Ashe discussed the strategic entry into new verticals such as refuel, healthcare, and sports lighting. The company has seen strong traction in these areas, particularly with the introduction of new product portfolios and strategic acquisitions, which are expected to contribute positively to future growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
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Acuity (AYI) Reports Q3 Earnings: What Key Metrics Have to Say
For the quarter ended May 2025, Acuity (AYI) reported revenue of $1.18 billion, up 21.7% over the same period last year. EPS came in at $5.12, compared to $4.15 in the year-ago quarter. The reported revenue represents a surprise of +3.02% over the Zacks Consensus Estimate of $1.14 billion. With the consensus EPS estimate being $4.42, the EPS surprise was +15.84%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Acuity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Acuity Intelligent Spaces: $264.10 million versus $240.34 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +248.9% change. Net Sales- Acuity Brands Lighting (ABL): $923.20 million versus the four-analyst average estimate of $910.77 million. The reported number represents a year-over-year change of +2.8%. Net Sales- Eliminations: -$8.70 million versus -$7.34 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +42.6% change. Adjusted operating profit- Acuity Intelligent Spaces: $62.30 million compared to the $44.69 million average estimate based on three analysts. Adjusted operating profit- Acuity Brands Lighting: $173.90 million versus $164.07 million estimated by three analysts on average. View all Key Company Metrics for Acuity here>>>Shares of Acuity have returned +9.9% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acuity, Inc. (AYI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
26-06-2025
- Business
- Yahoo
Acuity Brands Tops Third-Quarter Views, Sees 'Solid' Second-Half Performance
Acuity Brands' (AYI) fiscal third-quarter results came in stronger than expected, which the company Sign in to access your portfolio
Yahoo
26-06-2025
- Business
- Yahoo
Acuity Brands (NYSE:AYI) Surprises With Strong Q2, Stock Soars
Intelligent lighting and space solutions provider Acuity Brands (NYSE:AYI) announced better-than-expected revenue in Q2 CY2025, with sales up 21.7% year on year to $1.18 billion. Its non-GAAP profit of $5.12 per share was 15.3% above analysts' consensus estimates. Is now the time to buy Acuity Brands? Find out in our full research report. Revenue: $1.18 billion vs analyst estimates of $1.14 billion (21.7% year-on-year growth, 3.1% beat) Adjusted EPS: $5.12 vs analyst estimates of $4.44 (15.3% beat) Adjusted EBITDA: $236.3 million vs analyst estimates of $208.1 million (20% margin, 13.6% beat) Operating Margin: 11.9%, down from 15% in the same quarter last year Free Cash Flow Margin: 33.8%, up from 14.5% in the same quarter last year Organic Revenue rose 21.7% year on year (-3.2% in the same quarter last year) Market Capitalization: $8.80 billion "We delivered strong performance in the third quarter of fiscal 2025," stated Neil Ashe, Chairman, President and Chief Executive Officer. One of the pioneers of smart lights, Acuity (NYSE:AYI) designs and manufactures light fixtures and building management systems used in various industries. A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Acuity Brands grew its sales at a sluggish 4.3% compounded annual growth rate. This was below our standard for the industrials sector and is a tough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Acuity Brands's recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. Acuity Brands also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Acuity Brands's organic revenue was flat. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Acuity Brands reported robust year-on-year revenue growth of 21.7%, and its $1.18 billion of revenue topped Wall Street estimates by 3.1%. Looking ahead, sell-side analysts expect revenue to grow 12% over the next 12 months, an improvement versus the last two years. This projection is commendable and indicates its newer products and services will fuel better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Acuity Brands has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.7%. This result isn't surprising as its high gross margin gives it a favorable starting point. Looking at the trend in its profitability, Acuity Brands's operating margin rose by 1 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Acuity Brands generated an operating margin profit margin of 11.9%, down 3.1 percentage points year on year. Conversely, its revenue and gross margin actually rose, so we can assume it was less efficient because its operating expenses like marketing, R&D, and administrative overhead grew faster than its revenue. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Acuity Brands's EPS grew at a remarkable 14.6% compounded annual growth rate over the last five years, higher than its 4.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Acuity Brands's earnings can give us a better understanding of its performance. As we mentioned earlier, Acuity Brands's operating margin declined this quarter but expanded by 1 percentage points over the last five years. Its share count also shrank by 20.5%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Acuity Brands, its two-year annual EPS growth of 10.4% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q2, Acuity Brands reported EPS at $5.12, up from $4.15 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Acuity Brands's full-year EPS of $17.12 to grow 8.7%. We were impressed by how significantly Acuity Brands blew past analysts' organic revenue expectations this quarter. We were also excited its EPS and EBITDA outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 7.5% to $308.70 immediately following the results. Sure, Acuity Brands had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
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Acuity: Fiscal Q3 Earnings Snapshot
ATLANTA (AP) — ATLANTA (AP) — Acuity Inc. (AYI) on Thursday reported fiscal third-quarter net income of $98.4 million. The Atlanta-based company said it had net income of $3.12 per share. Earnings, adjusted for one-time gains and costs, were $5.12 per share. The results topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $4.42 per share. The lighting maker posted revenue of $1.18 billion in the period, also exceeding Street forecasts. Four analysts surveyed by Zacks expected $1.14 billion. Acuity shares have declined roughly 2% since the beginning of the year. The stock has climbed 21% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on AYI at
