What to Expect From Acuity Brands' (AYI) Earnings in Q2

Acuity Brands, Inc. AYI is slated to announce second-quarter fiscal 2022 results on Apr 5, before the opening bell.

In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 20.3% and revenues beat the same by 3.4%. On a year-over-year basis, the top and bottom lines increased 40.4% and 166.9%, respectively.

Acuity Brands beat earnings expectations in the trailing seven quarters.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has moved up 2.7% to $2.31 in the past seven days. The estimated figure indicates an increase of 9% from $2.12 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $897.5 million, suggesting a 15.6% increase from the year-ago reported figure of $776.6 million.

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

Despite higher raw materials and freight costs as well as supply chain interruptions for electrical components, Acuity Brands’ second-quarter fiscal 2022 earnings are likely to have registered solid year-over-year growth.

The company has been banking on strength in go-to-market channels and its product portfolio and robust improvement in the economy. Effective cost management and price increase across the portfolio might have added to the positives. Segment wise, it remains optimistic about Acuity Brands Lighting and Lighting Controls "ABL" as well as Intelligent Spaces Group "ISG" businesses.

AYI is focused 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 second-quarter revenues.

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 +3.03%. 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 also have the right combination of elements to post an earnings beat in their respective results.

Weyerhaeuser Company WY has an Earnings ESP of +4.35% and carries a Zacks Rank #2.

Weyerhaeuser is expected to register a 17.6% increase in earnings for the quarter to be reported. WY reported better-than-expected earnings in two of the last four quarters but missed on two occasion, with the average positive surprise being 1.59%.

Quanta Services, Inc. PWR has an Earnings ESP of +4.22% and a Zacks Rank #3.

Quanta is expected to register 62.7% growth in earnings for the quarter to be reported. The company reported better-than-expected earnings in all the last four quarters, with the average being 7%.

Watsco, Inc. WSO has an Earnings ESP of +10.67% and a Zacks Rank #2.

Watsco is expected to register a 28.1% growth in earnings for the quarter to be reported. The company reported better-than-expected earnings in the last four quarters, with the average being 22.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Quanta Services, Inc. (PWR) : Free Stock Analysis Report

Watsco, Inc. (WSO) : Free Stock Analysis Report

Weyerhaeuser Company (WY) : Free Stock Analysis Report

Acuity Brands Inc (AYI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research