A Glimpse of Acuity Brands's Earnings Potential

Acuity Brands AYI is preparing to release its quarterly earnings on Thursday, 2025-04-03. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Acuity Brands to report an earnings per share (EPS) of $3.61.

Acuity Brands bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.08, leading to a 0.0% drop in the share price on the subsequent day.

Here's a look at Acuity Brands's past performance and the resulting price change:

Market Performance of Acuity Brands's Stock

Shares of Acuity Brands were trading at $263.67 as of April 01. Over the last 52-week period, shares are down 0.14%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Views on Acuity Brands

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Acuity Brands.

With 5 analyst ratings, Acuity Brands has a consensus rating of Neutral. The average one-year price target is $327.2, indicating a potential 24.09% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Regal Rexnord, Generac Hldgs and nVent Electric, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Regal Rexnord is maintaining an Outperform status according to analysts, with an average 1-year price target of $176.83, indicating a potential 32.94% downside.
• The consensus outlook from analysts is an Buy trajectory for Generac Hldgs, with an average 1-year price target of $181.3, indicating a potential 31.24% downside.
• For nVent Electric, analysts project an Outperform trajectory, with an average 1-year price target of $79.75, indicating a potential 69.75% downside.

Overview of Peer Analysis

Within the peer analysis summary, vital metrics for Regal Rexnord, Generac Hldgs and nVent Electric are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Acuity Brands ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. Acuity Brands has the highest return on equity compared to its peers.

All You Need to Know About Acuity Brands

Acuity is a leading industrial technology company that offers lighting, lighting controls, and intelligent building solutions. Acuity Brands designs, manufactures, and brings to market products and services relating to these and other offerings. Acuity Brands has two reportable segments: Acuity Brands Lighting and the Intelligent Spaces Group. ABL sells commercial, architectural, and specialty lighting, including components and control systems. ISG offers building management and audio/visual solutions to help make buildings intelligent.

Understanding the Numbers: Acuity Brands's Finances

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Acuity Brands's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2024, the company achieved a revenue growth rate of approximately 1.81%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Acuity Brands's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.21% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Acuity Brands's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.41%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Acuity Brands's ROA stands out, surpassing industry averages. With an impressive ROA of 2.78%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Acuity Brands's debt-to-equity ratio is below the industry average at 0.23, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Acuity Brands visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.