Atlanta-based lighting and building management solutions services provider Acuity Brands (AYI) - Get Report was rising in premarket trading Wednesday after easily topping analysts' second-quarter earnings expectations.
However, light revenue could hold the stock back in trading.
The company reported a second-quarter profit of $66.3 million. or $1.99 per share, on revenue of $854.4 million. Analysts were expecting the company to report earnings of $1.79 per share on revenue of $876.9 million.
"Although we believe second-quarter revenue growth was negatively impacted by the pull forward of orders by customers into the first quarter in advance of price increases, our net sales grew by almost 3%," said CEO Vernon J. Nagel. "Additionally, our results for the second quarter were solid despite continuing inflationary cost pressures and the impact of tariffs. We implemented several actions to address these cost issues, including price increases and productivity improvements."
The company expects the North American lighting market to grow in the low-single digit range in fiscal 2019.
"Our focus in fiscal 2019 is to garner additional top-line growth driven primarily by outperforming the growth rates of the markets we serve through execution of our previously announced growth strategies, improvement in the mix of products and solutions sold as we execute our tiered solutions strategy, and leveraging our fixed cost infrastructure to achieve targeted incremental margins to improve our overall profitability," Nagel said.
The shares rose 4% in trading to $128.70.
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