Acuity Brands (AYI) Tops Q4 EPS by 12c

Acuity Brands (NYSE: AYI) reported Q4 EPS of $2.55, $0.12 better than the analyst estimate of $2.43. Revenue for the quarter came in at $957.6 million versus the consensus estimate of $974.81 million.

Outlook

Mr. Nagel commented, “We remain bullish regarding the Company’s prospects for continued future profitable growth. While various leading indicators continue to generally reflect favorable conditions for our end markets, we are cautious regarding a meaningful rebound in our end-markets over the next few quarters as a result of various factors, including labor shortages in the construction industry and uncertainty related to both infrastructure spending as well as federal tax and trade policies. We expect to see some volatility in demand among certain sales channels and geographies, including possible short-term volatility due to the recent hurricanes that hit Florida, Texas, and Puerto Rico. At this time, we expect the growth rate for lighting and building management solutions in the North American market, which includes renovation and retrofit activity and comprises over 97 percent of the Company’s revenues, will be up low single-digits for fiscal 2018, reflecting an expected rebound in the second half of the year. We expect to continue to outperform the growth rates of the markets we serve by executing our strategies focused on growth opportunities for new construction and renovation projects, expansion into underpenetrated geographies and channels, and growth from the continued introduction of new lighting and building management solutions as part of our integrated, tiered solutions strategy.”

Management estimates a fiscal 2018 annual tax rate of approximately 35.5 percent before any discrete items, assuming the tax rates in the Company’s taxing jurisdictions remain generally consistent throughout the year. Additionally, management expects fiscal 2018 capital expenditures will approximate 2 percent of net sales.

Mr. Nagel concluded, “We believe the lighting and lighting-related industry as well as building management solutions will experience solid growth over the next decade, particularly as energy and environmental concerns come to the forefront along with emerging opportunities for digital lighting to play a key role in the Internet of Things. We believe we are uniquely positioned to fully participate in this exciting industry

For earnings history and earnings-related data on Acuity Brands (AYI) click here.

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