Acuity Brands Beats Q3 Earnings Expectations; Shares Down 6%

The lighting and building management firm Acuity Brands (AYI) delivered better-than-expected quarterly earnings and revenue in the fiscal third quarter of 2021.

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However, following the announcement, shares of the company declined 1.8% in Thursday’s extended trading session after closing 5.8% lower on the day.

Net sales of $899.7 million surpassed the Street’s estimates of $839.75 million, and jumped 15.9% from the year-ago period.

Adjusted earnings came in at $2.77 per share, which outpaced consensus estimates of $2.27 per share. Furthermore, earnings were up 42.8% year-over-year.

Segment-wise, Acuity Brands Lighting and Lighting Controls (ABL) net sales increased 14.6%, while Intelligent Spaces Group (ISG) sales jumped 46.9% year-over-year.

Recently, the company closed the acquisition of ams OSRAM’s North American Digital Systems business. The deal was announced on June 4.

Acuity Brands CEO Neil Ashe said, “We continue to allocate capital effectively with the acquisition of ams OSRAM’s North American Digital Systems business which will contribute to innovation and long-term growth.” (See Acuity Brands stock charts on TipRanks)

Following the fiscal Q3 earnings release, Oppenheimer analyst Christ o pher Glynn assigned a Buy rating and a price target of $205 (16.3% upside potential).

Glynn commented, “Results reflect improved market conditions and excellent competitive position, likely providing strong reinforcement for strong year-to-date share price performance.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 2 Holds. The average AYI price target of $187.60 implies 6.4% upside potential from current levels. Shares have gained 46.6% over the past six months.