NYSE$AYI

Acuity Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Acuity Brands reported a decrease in net sales and net income for the first quarter of fiscal year 2020, with net sales decreasing by 10.5% and net income decreasing by 28% compared to the year-ago period.

Acuity Brands reported a decline in first-quarter net sales by 10.5% to $834.7 million compared to the previous year, which was greater than expected due to weaker market demand. Net income also decreased by 28% to $57.0 million, and diluted earnings per share (EPS) decreased by 27% to $1.44. The company is implementing streamlining actions to reduce operating costs in response to the uncertain market environment.

  • Net sales decreased by 10.5% compared to the year-ago period, totaling $834.7 million.
  • Operating profit decreased by 28% compared to the year-ago period, totaling $83.6 million.
  • Net income decreased by 28% compared to the prior-year period, totaling $57.0 million.
  • Diluted earnings per share (EPS) decreased 27% to $1.44 compared with the year-ago period.

Headline financials

Total Revenue

$835M

Previous: $933M-10.5%
EPS (adj)

$2.13

Previous: $2.32-8.2%
Adj. Operating Margin

14.3%

Previous: 14.4%-0.7%
Capital Expenditures

-$11.6M

Previous: -$14M+17.1%
Net Income

$57M

Previous: $79.6M-28.4%
Operating Income

$83.6M

Previous: $116M-28.2%
Gross Profit

$356M

Previous: $368M-3.2%
Stock-Based Comp

$16.7M

Previous: $7.8M+114.1%

Revenue & EPS history

Acuity Brands · Revenue · Quarterly

$835M

Q1 2020-10.5%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Acuity Brands · $1.21B total across 2 segments · Q3 2026

  • Acuity Brands Lighting
    $905M
  • Acuity Intelligent Spaces
    $304M

Forward guidance

Acuity Brands anticipates continued market challenges due to global trade issues and tariffs, expecting sluggish market demand for lighting products until there is more clarity; the company is focused on outperforming core market growth rates, increasing margins through a richer product mix, and leveraging fixed costs to improve profitability.

Tailwinds

  • Improvement in the Dodge Momentum Index, which could be a positive indicator for market demand for lighting in the latter half of this calendar year.
  • Focus in fiscal 2020 is to outperform the growth rates of the core markets.
  • Increase margins by selling a richer mix of products and solutions as we execute our tiered solutions strategy.
  • Leverage our fixed cost infrastructure to achieve targeted incremental margins to improve our overall profitability.
  • Neil Ashe will join the Company as our next President and CEO.

Headwinds

  • Caution about overall market conditions within the lighting industry for the remainder of our fiscal 2020 primarily due to continued economic uncertainties caused by global trade issues, including tariffs.
  • Expect to continue to have topline headwinds associated with the pruning of products that do not meet our profitability objectives, primarily in the retail channel.
  • Market demand for lighting products expected to remain sluggish until there is more clarity regarding these global trade issues.
  • Decline in market demand during the first fiscal quarter in the low-to-mid-single digit range.
  • Streamlining actions to reduce our operating costs to better align with current demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.1%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+0.5%

Avg return

30 days after

51%

34 / 67 earnings

Positive

+20.6%

Q1 2014

Best reaction

-16.5%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-7.6%+4.2%
Q1 2026-12.9%-11.9%-11.2%
Q4 2025+5.2%+2.0%+6.0%
Q3 2025-2.0%-0.8%+8.4%
Q2 2025-3.4%-16.2%-5.1%
Q1 2025+0.5%+0.8%+6.5%
Q4 2024+9.0%+11.4%+9.2%
Q3 2024+0.7%+1.7%+3.6%
Q2 2024+1.0%+2.3%-2.8%
Q1 2024+12.4%+9.8%+18.2%
Q4 2023+6.9%+8.0%+1.9%
Q3 2023+1.5%+1.6%+3.4%
Q2 2023-11.8%-13.5%-15.5%
Q1 2023+3.6%+2.4%+12.9%
Q4 2022+6.1%-1.5%+11.3%
Q3 2022+1.3%+0.1%+17.1%
Q2 2022-9.2%-8.8%-6.8%
Q1 2022-2.9%-1.3%-11.0%
Q4 2021+13.0%+16.7%+22.3%
Q3 2021-4.4%-9.1%-6.2%
Q2 2021+16.0%+17.8%+27.4%
Q1 2021-9.6%-7.4%-5.6%
Q4 2020-12.0%-14.4%-15.8%
Q3 2020+3.1%+0.2%+13.1%
Q2 2020-7.0%+7.2%+2.0%
Q1 2020-15.3%-17.1%-17.8%
Q4 2019-7.2%-7.7%-2.7%
Q3 2019-4.1%-7.3%-7.1%
Q2 2019+10.5%+12.8%+17.1%
Q1 2019+1.3%+0.8%+4.2%
Q4 2018-12.9%-17.0%-15.7%
Q3 2018+7.7%+9.7%+15.9%
Q2 2018-1.2%-3.9%-16.8%
Q1 2018-14.4%-14.5%-21.7%
Q4 2017+3.6%+0.9%-4.5%
Q3 2017+13.1%+13.0%+13.6%
Q2 2017-16.5%-15.2%-11.9%
Q1 2017-12.0%-9.3%-11.9%
Q4 2016-4.3%-4.4%-11.2%
Q3 2016+1.3%+2.3%+7.3%
Q2 2016+10.4%
Q1 2016-7.8%
Q4 2015+11.1%
Q3 2015+5.0%
Q2 2015-0.9%
Q1 2015+7.8%
Q4 2014+13.0%
Q3 2014-13.6%
Q2 2014+0.1%
Q1 2014+20.6%
Q4 2013+2.2%
Q3 2013+7.8%
Q2 2013+6.6%
Q1 2013-4.6%
Q4 2012-5.1%
Q3 2012+17.1%
Q2 2012-11.3%
Q1 2012+15.1%
Q4 2009-6.2%
Q4 2011-6.2%
Q3 2010-0.2%
Q3 2011-0.2%
Q2 2010+4.7%
Q2 2011+4.7%
Q1 2011-7.6%
Q1 2010-7.6%
Q4 2010-7.6%

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