What to Expect When Acuity Brands (AYI) Reports Earnings Tomorrow

NEW YORK (TheStreet) -- Acuity Brands Inc. (AYI) is scheduled to release its 2015 fiscal third quarter earnings results before the market open on Wednesday morning. The lighting solutions provider is expected to post a year-over-year rise in earnings per share and revenue for the most recent quarter.

Acuity Brands has been forecast to report earnings of $1.34 per share on revenue of $686.94 million for the quarter ended May 2015.

Last year, the company said its adjusted earnings were $1 per diluted share on net sales of $603.9 million for the fiscal 2014 third quarter.

Shares of Acuity Brands closed up by 0.40% to $179.98 on Tuesday afternoon.

Acuity Brands is an Atlanta-based consumer goods and services company whose lighting solutions devices include luminaires, lighting controls, power supplies, LED lamps and skylights.

Separately, TheStreet Ratings team rates ACUITY BRANDS INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate ACUITY BRANDS INC (AYI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 12.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AYI's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AYI has a quick ratio of 2.20, which demonstrates the ability of the company to cover short-term liquidity needs.
  • ACUITY BRANDS INC has improved earnings per share by 42.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACUITY BRANDS INC increased its bottom line by earning $4.05 versus $2.94 in the prior year. This year, the market expects an improvement in earnings ($5.35 versus $4.05).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electrical Equipment industry average. The net income increased by 41.9% when compared to the same quarter one year prior, rising from $32.70 million to $46.40 million.
  • Net operating cash flow has significantly increased by 105.71% to $28.80 million when compared to the same quarter last year. In addition, ACUITY BRANDS INC has also vastly surpassed the industry average cash flow growth rate of -9.57%.
  • You can view the full analysis from the report here: AYI Ratings Report

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