Acuity Brands Clocks Mixed Q3 Performance, Completes Acquisition Of KE2 Therm

Acuity Brands, Inc AYI reported a third-quarter FY23 net sales decline of 5.7% year-over-year to $1.0 billion, missing the consensus of $1.05 billion.

Adjusted EPS of $3.75 beat the consensus of $3.71.

Sales by segments: Acuity Brands Lighting and Lighting Controls $940.7 million (-6.7% Y/Y) and Intelligent Spaces Group $65.8 million (+12.9% Y/Y).

The consolidated adjusted operating margin grew by 100 bps to 16.3%. ABL's adjusted operating margin expanded by 120 bps to 17%. ISG's margin decreased by 380 bps to 19.5%.

Adjusted EBITDA was flat at $176 million. Operating cash flow was $471.5 million for the first nine months of FY23.

"In the third quarter of fiscal 2023, we expanded adjusted operating profit margin both sequentially and year-over-year. We continued to grow adjusted diluted earnings per share, and we generated strong cash flow from operations, despite a decline in net sales," stated Neil Ashe, Chairman, President, and CEO of Acuity Brands. "We completed the acquisition of KE2 Therm, and we continued to repurchase our shares."

The company's quarterly dividend of $0.13 per share is payable on August 1, 2023, to shareholders of record on July 18, 2023.

Price Action: AYI shares traded lower by 0.23% at $160.29 on the last check Thursday.