By Dhirendra Tripathi
Investing.com – Acuity Brands stock (NYSE:AYI) soared by almost 10% Wednesday as the company’s fourth-quarter revenue and earnings topped estimates in a challenging environment.
Notwithstanding higher material, labor, and freight costs, the maker of lighting and building management systems managed to improve its gross profit margins by 10 basis points. Chief Executive Neil Ashe attributed this to ongoing product and productivity improvements, higher volumes and benefits from recent price increases.
One basis point is one-hundredth of a percent.
Net sales in the lighting and lighting control business, which account for 95% of the business, rose 11%. Sales in the company’s Intelligent Spaces Group rose 23%.
Fourth-quarter net sales rose over 11% to $992.7 million. Adjusted profit per share jumped 39% to was $3.27.
The company spent $434.9 million to buy back half of its 7.6 million share repurchase authorization.