Acuity Brands Beats Analyst Estimates on EPS

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Acuity Brands (NYS: AYI) reported earnings on Jan. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Acuity Brands beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved, and earnings per share increased significantly.

Gross margins shrank, operating margins increased, and net margins expanded.

Revenue details
Acuity Brands reported revenue of $474 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $467 million. Sales were 12% higher than the prior-year quarter's $425 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.74. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share on the same basis. GAAP EPS of $0.70 for Q1 were 25% higher than the prior-year quarter's $0.56 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.8%, 60 basis points worse than the prior-year quarter. Operating margin was 11.2%, 50 basis points better than the prior-year quarter. Net margin was 6.3%, 60 basis points better than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $450 million. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $1.9 billion. The average EPS estimate is $2.95.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 200 members out of 217 rating the stock outperform, and 17 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Acuity Brands a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Acuity Brands is outperform, with an average price target of $45.50.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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