Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Acuity Brands Profit Declines, Misses Estimate; Stock Down - Update

RELATED NEWS
Trade AYI now with 

Lighting solutions provider Acuity Brands Inc. (AYI: Quote), Wednesday reported a lower profit for the second quarter as one-time charges and higher taxes more than offset a 10 percent rise in sales.

Earnings for the quarter missed Street estimates by a wide margin, while sales topped expectations. Following the results, Acuity Brands shares lost almost seven percent in morning trade on the New York Stock Exchange.

Results for the quarter were hurt by a special charge of $6.6 million related to streamlining activities. Further, the effective tax rate for the quarter was higher at 35.4 percent compared to 31.4 percent in the prior year, reflecting absence of research credits.

Sales for the quarter rose 10 percent from last year, led by a 5 percent increase in unit volume, 3 percent from a favorable price mix, and 2 percent from acquisitions.

The growth in unit volume was broad-based across most product categories and key sales channels in North America.

The Atlanta, Georgia-based company reported second-quarter net income of $19.5 million or $0.46 per share, compared to $20 million or $0.45 per share last year.

Excluding items, adjusted earnings for the quarter were $24 million or $0.57 per share.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter totaled $457.7 million, compared to $416 million last year. Analysts expected revenue of $455.42 million for the quarter.

Moving forward, the company continues to expect volatility in both customer demand and commodity costs, while exuding confidence over the long term.

AYI is currently trading at $59.23, down $4.42 or 6.94%, on a volume of 1.4 million shares.

Register
To receive FREE breaking news email alerts for Acuity Brands Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Shares of OvaScience Inc. (OVAS) have had a strong run in 2014, rising over 370 percent year-to-date. And that's indeed a very impressive return delivered by the fertility treatment company, which suffered a setback last year when it had to suspend a U.S. trial of its flagship fertility treatment due to regulatory concerns raised by the FDA. Nike Inc., the world's largest athletic shoes and apparel maker, said Thursday after the markets closed that its second quarter profit rose 23% from last year, helped by higher revenue and improved gross margin. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. Citing extreme fluctuation of the ruble, Apple Inc. (AAPL) has reportedly discontinued its online sales of products in Russia. Despite efforts of the Russian central bank, the ruble has been spiraling downward, with oil prices plunging to historic levels. The ruble shed around 19 percent on Wednesday....
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.