Acuity Brands' Earnings Beat Last Year's by 27%
Acuity Brands (NYS: AYI) reported earnings on April 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Acuity Brands met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Gross margin expanded, operating margin increased, and net margin dropped.
Acuity Brands reported revenue of $457.7 million. The 12 analysts polled by S&P Capital IQ expected a top line of $456.5 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $416.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.57. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.62 per share on the same basis. GAAP EPS of $0.46 for Q2 were 2.2% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.7%, 30 basis points better than the prior-year quarter. Operating margin was 10.0%, 110 basis points better than the prior-year quarter. Net margin was 4.3%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $490.0 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $2.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Acuity Brands a green thumbs-up, and three 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 $56.30.
Over the decades, small-cap stocks like Acuity Brands have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Acuity Brands to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.