Acuity Manufacturers (AYI) got here out with quarterly ear
Acuity Manufacturers (AYI) got here out with quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $1.96 per share. This compares to earnings of $2.75 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 19.90%. 1 / 4 in the past, it was anticipated that this lighting maker would publish earnings of $1.29 per share when it truly produced earnings of $1.94, delivering a shock of 50.39%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates two occasions.
Acuity Manufacturers, which belongs to the Zacks Constructing Merchandise – Lighting business, posted revenues of $891.20 million for the quarter ended August 2020, surpassing the Zacks Consensus Estimate by 9.40%. This compares to year-ago revenues of $938.10 million. The corporate has topped consensus income estimates thrice over the past 4 quarters.
The sustainability of the inventory’s instant worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
Acuity Manufacturers shares have misplaced about 17.9% because the starting of the yr versus the S&P 500’s acquire of 5.8%.
What’s Subsequent for Acuity Manufacturers?
Whereas Acuity Manufacturers has underperformed the market to date this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.
Empirical analysis exhibits a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a powerful monitor document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Acuity Manufacturers was unfavorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You may see the whole listing of immediately’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $1.70 on $761.80 million in revenues for the approaching quarter and $7.51 on $3.27 billion in revenues for the present fiscal yr.
Buyers must be conscious of the truth that the outlook for the business can have a fabric influence on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Constructing Merchandise – Lighting is at present within the high 26% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.