Acuity Brands (AYI) Stock Gets Boost From Strong Q3 Earnings

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Lighting technology company Sharpness marks (NYSE:AYI) is generally not on people’s radars. However, today the company is attracting attention as Acuity Brands’ third quarter fiscal 2022 results are illuminated by positive data points. As a result, AYI stock is holding up relatively well despite widespread market anxiety.

As inflation and supply chain bottlenecks beset businesses in mid-2022, Acuity’s fiscal 2022 third quarter results presented the lighting company with an opportunity to shine. And it shone as Acuity Brands demonstrated its strength in multiple business segments.

The Company’s two main segments are Lighting and Lighting Controls and Intelligent Spaces Group. Year over year, the former segment increased its net sales by 18.6%, while the latter segment’s net sales increased by 5.2%.

Overall, Acuity Group increased net sales 18% to $1.06 billion, beating FactSet’s consensus estimate of $985.4 million. Additionally, the company increased its adjusted diluted (non-GAAP) earnings per share by 27.1% to $3.52, which was higher than the $2.96 that analysts had expected.

What’s going on with AYI stocks?

With all major stock indices down today, including the S&P500 and the Nasdaq – there were few bright spots in the middle of the wreckage. Among those bright spots was AYI stock, which managed to remain moderately green in early trading.

Perhaps market jitters kept Acuity Brands stock price from rising higher than it actually did. After all, the company really knocked it out of the park with its quarterly beats across the board.

Even after the release of Acuity Brands’ exceptional fiscal results, the company’s shares are still down 26.5% in 2022 so far. With that, Acuity’s 12-month P/E ratio is 16.12, which could attract some value seekers into the trade.

At least we can assume that Acuity Brands Chairman, President and CEO Neil Ashe is confident about his company’s future prospects. “We are executing consistently through meaningful and continuous improvements to our business, and we continue to drive shareholder value through share buybacks,” Ashe assured.

Indeed, Acuity repurchased 2.3 million shares of common stock for a total of $405 million in the first nine months of fiscal 2022. So perhaps the CEO’s confidence is warranted because there could be have a light at the end of the tunnel for holders of AYI Stock.

As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.

David Moadel has delivered compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga and (of course) He is also the Chief Analyst and Market Researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.

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