By Sam Boughedda
Acuity Brands (NYSE:AYI) shares surged Monday morning on the back of its fiscal first-quarter earnings release, which saw it top profit and revenue estimates.
The lighting company said earnings per share for the period were $3.29, $0.27 better than the analyst estimate of $3.02, with revenue, driven by a $63.5 million rise in ABL net sales, came in at $997.9M versus the consensus estimate of $984.6M.
ISG net sales for the quarter were $56.8M, up $10.4M from the previous year. Meanwhile, Acuity Brands Lighting and Lighting Controls (ABL) net sales rose 7.2% to $947.1M.
"We delivered solid results in the first quarter of fiscal 2023 as we continued to demonstrate our ability to drive sales growth through product vitality and service in both our lighting and spaces businesses," commented Neil Ashe, Chairman, President, and Chief Executive Officer of Acuity Brands, Inc. "We expanded adjusted operating profit, substantially grew adjusted diluted earnings per share and generated strong cash flow from operations. We again created permanent shareholder value through share repurchases."
At the time of writing, AYI shares are up 4.8% at just over $178 per share. The stock initially hit a high of $190 following the release.
Reacting to the report, Oppenheimer analysts said in a note that "AYI delivered a solid FY23 start."
The analysts, who have an Outperform rating on the stock, stated: "AYI's FY1Q23 adjusted EPS of $3.29/+15% beat our $2.97 estimate and $3.02E consensus, on revenue of $$998M/+8%, meeting our $1.00B/+8% estimate; above $985M consensus estimate."