Stock Recovers
Read management/analysts’ comments on Acuity’s Q4 earnings report
Of late, high component and freight costs have been a drag on the company’s financial performance. The management responded to the cost pressure by increasing prices in a phased manner. The market will be closely tracking the upcoming earnings announcement and CEO’s comments to see how the price hike has influenced performance. The recent uptick in sales can be linked, in part, to contributions from Osram Digital Systems, whose North American arm recently joined the Acuity fold.
Q4 Outcome
Taking a cue from elevated costs, Acuity executives recently issued cautious guidance for gross margin. Meanwhile, adjusted earnings climbed to $3.27 per share In the final three months of fiscal 2021 from $2.35 per share in the prior-year quarter. The growth was driven by an 11% increase in net sales to $992.7 million. The numbers also topped expectations.
“As we look forward, we expect to continue this performance. We are strategically positioned at the intersection of sustainability and technology. We have assembled a world-class team. We have demonstrated the ability to both build and acquire businesses. We have strong organic cash generation and we have demonstrated that we know what to do with it to create value,” said Neil Ashe, chief executive officer of Acuity Brands.
Retail Slump
Meanwhile, there has been a dip in retail channel sales, which is attributable to a temporary drop in orders from leading customers. The company is scheduled to publish first-quarter results on January 7 before the regular trading hours. Experts have predicted a double-digit increase in earnings to $2.42 per share, on revenues of $880.30 million.
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In the past six months, Acuity Brands’ stock rose a whopping 77%, with most of the gains coming after the release of the fourth-quarter report in October. The shares also stayed above the 52-week average since then.