Yahoo Finance Acuity Brands (AYI) to Report Q2 Earnings: What's in Store?
Acuity Brands, Inc. AYI is slated to announce second-quarter fiscal 2023 results on Apr 4, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 12.7% and increased 15.4% year over year. The top line increased 0.5% but missed the consensus mark.
Acuity Brands beat earnings expectations in the trailing 11 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at $2.54 in the past 60 days. The estimate figure indicates a decrease of 1.2% from the $2.57 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $959.99 million, suggesting a 5.6% increase from the year-ago reported figure of $909.1 million.
Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote
Factors to Note
Higher pricing and the filling of back orders, along with renovation projects, are likely to have aided the company’s sales in the to-be-reported quarter. The focus on product vitality and service levels, strong contributions from both of its segments and benefits from the OSRAM DS business acquisition are likely to have contributed to Acuity Brands' growth in second-quarter fiscal 2023.
The company has been banking on its strength in the go-to-market channels and its product portfolio. It has been focused on investing in product development. It has been introducing lighting and control products, and evolving certain product and solutions portfolio parts. These products use fewer inputs and are highly mobile. Some of the products are globally sourced, while others are manufactured in the company’s facilities to mitigate the supply-chain complexity, thereby helping to improve margins.
However, higher raw material and freight costs, along with supply-chain disruptions for electrical components, are likely to have put some pressure on its fiscal second-quarter margins. Again, slowing housing demand, project delays and more competitive pricing are likely to have been added headwinds.
What Our Model Indicates
Our proven model conclusively predicts an earnings beat for Acuity Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Currently, the company has a Zacks Rank #2 and an Earnings ESP of +7.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stock With Favorable Combination
According to our model, here's a stock that also has the right combination of elements to post an earnings beat this time around.
Latham Group, Inc. SWIM has an Earnings ESP of +8.70% and a Zacks Rank #3.
SWIM’s earnings missed the consensus mark in all the trailing four quarters, the average negative surprise being 91.8%. The company is expected to report a loss of 8 cents per share in the to-be-reported quarter.
Recent Releases
KB Home KBH reported better-than-expected results in first-quarter fiscal 2023 (ended Feb 28, 2023), defying the challenging housing market conditions. Its earnings and revenues beat the Zacks Consensus Estimate.
Pertaining to the quarterly results, Jeffrey Mezger, chairman, president and chief executive officer, stated, “Our revenues were at the high end of our guidance range and we outperformed both our operating and gross margin expectations. In addition, we further expanded our book value per share, which grew to $44.80, up 27% from a year ago.”
Lennar Corporation LEN reported impressive results for first-quarter fiscal 2023, wherein earnings and revenues beat the Zacks Consensus Estimate.
Pertaining to the prospect, Stuart Miller, executive chairman of Lennar, said, "As we have seen over the past quarters, interest rates are fluctuating and are likely to continue to move and the housing market will continue to rebalance pricing and interest rates. While we have a clear-cut strategy of execution, we will only give broad boundaries for deliveries and gross margin.”
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