Lighting Company Acuity Brands' Q2 Sales Dip But Profits and Margins Rise

Lighting and Building Management firm Acuity Brands, Inc AYI reported a second-quarter fiscal 2024 net sales decline of 4.0% year-over-year to $905.9 million, missing the consensus of $907.7 million. 

It clocked an adjusted EPS of $3.38, beating the consensus of $3.25.

Sales by segments: Acuity Brands Lighting (ABL) and Lighting Controls revenue hit $843.5 million (-5.3% Y/Y), and Intelligent Spaces Group (ISG) clocked $68.1 million (+17.0% Y/Y).

The consolidated adjusted operating margin grew by 150 bps to 15.5%. ABL’s adjusted operating margin expanded by 120 bps to 16.2%. ISG’s margin increased by 240 bps to 21.0%.

The company generated $292.6 million in operating cash flow for the first half of fiscal 2024, a decrease of $13.8 million compared to the prior year. Adjusted EBITDA was $153.0 million, up from $144.8 million a year ago. 

Chair and CEO Neil Ashe said, “We increased our adjusted operating profit, adjusted operating profit margin, and adjusted diluted earnings per share. We generated strong free cash flow, and we allocated capital effectively to drive value.”

AYI stock gained 43% in the last 12 months. Investors can gain exposure to the stock via First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN and SPDR S&P Kensho Intelligent Structures ETF SIMS.

Price Action: AYI shares are up 0.83% at $264.00 premarket on the last check Wednesday.