Acuity Brands Q4 Earnings Beat Estimates

Acuity Brands, Inc. AYI reported fourth-quarter FY21 sales growth of 11.4% year-over-year to $992.7 million, beating the consensus of $963.96 million.
The gross margin expanded by 10 bps to 42.2%, impacted by higher material, labor, and freight costs.
Sales by segments: Acuity Brands Lighting and Lighting Controls $946.9 million (+11% Y/Y), Intelligent Spaces Group $50.5 million (+23.5% Y/Y).
Adjusted EPS improved to $3.27 from $2.35 in 4Q20, beating the consensus of $2.85.
The operating income increased by 25.4% Y/Y to $132.8 million, and the margin expanded by 150 bps to 13.4%. Adjusted operating margin expanded by 110 bps to 15.8%.
Acuity Brands generated cash from operating activities year-to-date of $408.7 million, compared to $504.8 million a year ago.
The company repurchased 3.8 million shares for a total of $434.9 million at an average price paid of $114 per share for the fiscal and has ~3.8 million shares remaining under its most recent share purchase authorization.
Recently, Credit Suisse lowered Acuity Brands Price Target to $209 (implying an upside of 18.6%) from $212 and maintained Outperform rating.
Price Action: AYI shares traded higher by 1.66% at $179.25 in premarket on the last check Wednesday.

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