What's in Store for Acuity Brands' (AYI) in Q3 Earnings?
Acuity Brands, Inc. AYI is slated to announce third-quarter fiscal 2023 results on Jun 29, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 20.5% and increased 19.1% year over year. The top line, however, lagged the consensus mark by 1.7% but increased 3.8% from the year-ago period.
Acuity Brands beat earnings expectations in the trailing 12 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to $3.62 from $3.60 in the past seven days. The estimate figure indicates an increase of 2.8% from $3.52 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.04 billion, suggesting a 2.3% decrease from the year-ago reported figure of $1.06 billion.
Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote
Factors to Note
The focus on product vitality and service levels, strong contributions from both of its segments, along with renovation projects and benefits from the OPTOTRONIC business acquisition, are likely to have contributed to Acuity Brands' growth in third-quarter fiscal 2023.
The company has gained from its strength in the go-to-market channels and its product portfolio. It has focused on investing in product development. The company has also introduced lighting and control products and evolved 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 are likely to have put some pressure on its fiscal third-quarter margins. Again, slowing housing demand, project delays and more competitive pricing are likely to have added headwinds.
What Our Model Indicates
Our proven model does not conclusively predict 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. This is not the case here.
Currently, the company has an Earnings ESP of -1.11% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
According to our model, here are stocks with the right combination of elements to post an earnings beat this time around.
M.D.C. Holdings, Inc. MDC has an Earnings ESP of +20.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
MDC’s earnings topped the consensus mark in two of the trailing four quarters and missed on the other two occasions, the average surprise being 27.8%. The company is expected to report earnings of 67 cents per share in the to-be-reported quarter, reflecting a 74.1% year-over-year decline.
North American Construction Group Ltd. NOA has an Earnings ESP of +3.33% and a Zacks Rank #3.
NOA’s earnings topped the consensus mark in three of the trailing four quarters and missed once, the average surprise being 18.1%. The company is expected to report earnings of 30 cents per share in the to-be-reported quarter, reflecting 130.8% year-over-year growth.
TopBuild BLD has an Earnings ESP of +1.30% and a Zacks Rank #3.
BLD’s earnings topped the consensus mark in all the trailing four quarters, the average surprise being 12.9%. The company is expected to report earnings of $4.36 per share in the to-be-reported quarter, reflecting a 1.6% year-over-year decline.
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
M.D.C. Holdings, Inc. (MDC) : Free Stock Analysis Report
TopBuild Corp. (BLD) : Free Stock Analysis Report
Acuity Brands Inc (AYI) : Free Stock Analysis Report
North American Construction Group Ltd. (NOA) : Free Stock Analysis Report
