Acuity Brands, Inc. AYI is scheduled to announce first-quarter fiscal 2025 results on Jan. 8, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 2.6% and increased 8.3% year over year. The top line beat the consensus mark by 2.3% and increased 2.2% from the prior year.
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Acuity Brands beat earnings expectations in the trailing 18 quarters.
How Are Estimates Placed for AYI?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to $3.88 from $3.84 in the past seven days. The estimated figure indicates an increase of 4.3% from $3.72 per share reported in the year-ago quarter.
Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote
The consensus mark for revenues is pegged at $951.9 million, indicating a 1.8% increase from the year-ago reported figure.
Factors to Shape AYI’s Q1 Results
Acuity Brands’ earnings & revenues are expected to have increased year over year in the first quarter of fiscal 2025, driven by improvements in product vitality, service levels, technological advancements and new product innovations. The company’s focus on expanding its market presence and increasing control over new opportunities is likely to have aided AYI’s performance in the to-be-reported quarter.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment revenues to increase 1% year over year to $885.3 million.
Within the ABL segment, we expect Independent Sales Network, Direct Sales Network, Corporate Account, Retail and Other revenues to increase 0.8%, 1.3%, 2.5%, 2.6% and 0.2%, respectively, year over year.
The company has gained from its diversified portfolio of innovative lighting control solutions and energy-efficient luminaries. Its focus on Intelligent Spaces Group (“ISG”) products, which specialize in providing products and services that enhance the intelligence, safety and sustainability of spaces, bodes well. Our model predicts the ISG segment’s revenues in the fiscal first quarter to increase 15.1% year over year to $73.9 million.
Acuity Brands' ongoing efforts to introduce new products and enhance existing ones are central to driving profitability. The company’s portfolio includes Made-to-Order, Design Select and Contractor Select, catering to different customer needs and contributing to margin improvement. The focus on new verticals, such as refueling and horticulture, also broadens market reach. The company’s cost management, pricing strategies and productivity improvements are likely to have aided it in boosting margins. We expect the company’s adjusted EBITDA margin to improve to 17.9% in the fiscal first quarter from 17.8% a year ago.
What Our Model Indicates for AYI
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.
AYI’s Earnings ESP: The company’s earnings ESP is +1.16% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AYI’s Zacks Rank: Acuity Brands currently has a Zacks Rank #3.
Other Stocks With the Favorable Combination
According to our model, here are some other companies in the Zacks Construction sector that, too, have the right combination of elements to post an earnings beat in the quarter to be reported.
Weyerhaeuser Company WY has an Earnings ESP of +27.27% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
WY reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 41.6%. The company’s earnings for the fourth quarter of 2024 are expected to decline 62.5% from the prior year.
PotlatchDeltic Corporation PCH currently has an Earnings ESP of +420.00% and a Zacks Rank of 3.
PCH reported better-than-expected earnings in two of the trailing four quarters, missed on one occasion and met on the remaining occasion, the average surprise being 50%. Earnings for the fourth quarter of 2024 are expected to a loss of one cent compared with break-even earnings reported a year ago.
Primoris Services Corporation PRIM currently has an Earnings ESP of +2.07% and a Zacks Rank of 3.
PRIM reported better-than-expected earnings in each of the last four quarters, the average surprise being 152.2%. The company’s earnings for the fourth quarter 2024 are expected to decrease 14.1% year over year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Weyerhaeuser Company (WY) : Free Stock Analysis Report
Potlatch Corporation (PCH) : Free Stock Analysis Report
Primoris Services Corporation (PRIM) : Free Stock Analysis Report
Acuity Brands Inc (AYI) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
