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Acuity Brands (AYI) to Post Q1 Earnings: What to Expect

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Acuity Brands, Inc. AYI is slated to announce first-quarter fiscal 2022 results on Jan 7, before the opening bell.

In the last reported quarter, its adjusted earnings topped the Zacks Consensus Estimate by 13.2% and revenues beat the same by 1.8%. On a year-over-year basis, the top and bottom lines improved 39.1% and 11.4%, respectively.

Markedly, the company beat earnings expectations in the trailing six quarters.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has gained 0.4% to $2.37 over the past 30 days. The estimated figure indicates an increase of 16.8% from $2.03 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $895.5 million, suggesting a 13.1% increase from the year-ago reported figure of $792 million.

Acuity Brands Inc Price and EPS Surprise

Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc Price and EPS Surprise

Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote

Factors to Note

Acuity Brands’ first-quarter fiscal 2022 earnings are likely to have registered year-over-year growth owing to strength in go-to-market channels and its product portfolio and robust improvement in the economy. Also, effective cost management and price increase across the portfolio might have added to the positives. Segment wise, it remains confident of Acuity Brands Lighting and Lighting Controls "ABL" as well as Intelligent Spaces Group "ISG" businesses.

The company has been focusing on investment in product development. It introduced new lighting and controls products as well as improved and evolved certain parts of the product and solutions portfolio. These products use fewer inputs and are highly mobile. Some of the products are globally sourced, while others are manufactured in the company’s own facilities to mitigate supply chain complexity. These moves are likely to have contributed to fiscal fourth-quarter revenues.

Yet, AYI is likely to have witnessed higher raw materials cost, supply chain interruptions for electrical components and a significant escalation in freight costs in the fiscal first quarter.

What Our Model Indicates

Our proven model 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 +3.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable Combination

According to our model, here are some other companies that too have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Weyerhaeuser Company WY is one of the leading U.S. forest product companies. The company has been benefiting from solid new residential construction activity, which in turn is leading to improved demand. Also, its focus on operational excellence has been advantageous over time.

WY, which currently sports a Zacks Rank #1, has an Earnings ESP of +5.44%.

Boise, ID-based Boise Cascade Company BCC — which makes wood products and distributes building materials in the United States as well as Canada — is aided by factors like favorable commodity wood products, pricing, and robust construction activity.

BCC has an Earnings ESP of +3.21% and holds a Zacks Rank #2, at present.

Stamford, CT-based United Rentals, Inc. URI is the largest equipment rental company in the world, with an integrated network of 1,278 rental locations in United States, Canada and Europe. The company primarily banks on broad-based growth across AYI’s verticals, with persistent growth opportunities for certain non-residential verticals including datacenter, healthcare and warehouse projects.

URI has an Earnings ESP of +6.26% and currently carries a Zacks Rank #2.


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