NYSE$AYI

Acuity Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Acuity Brands' third quarter results for fiscal year 2020 were announced, reflecting the impact of the COVID-19 pandemic on sales volume, while gross margins expanded and cash generation remained strong.

Acuity Brands reported a decrease in net sales by 18.1% compared to the prior-year period, primarily due to a decrease in volume attributed to the COVID-19 pandemic. However, the company expanded gross margins and generated cash through strategic actions taken before and during the pandemic.

  • Net sales decreased by 18.1% due to a 20% decrease in volume, offset by a 2% benefit from acquisitions.
  • Gross profit margin increased by 170 basis points due to lower input costs and contributions from acquisitions.
  • Operating profit margin decreased by 200 basis points, while adjusted operating profit margin decreased by 80 basis points.
  • Diluted EPS decreased by 31.5%, and adjusted diluted EPS decreased by 23.3% compared to the prior-year period.

Headline financials

Total Revenue

$776M

Previous: $948M-18.1%
EPS (adj)

$1.94

Previous: $2.53-23.3%
Capital Expenditures

-$38.3M

Previous: -$39.8M+3.8%
Free Cash Flow

$22.1M

Previous: $48.6M-54.5%
Net Income

$60.4M

Previous: $88.4M-31.7%
Operating Income

$83M

Previous: $120M-31.0%
Gross Profit

$328M

Previous: $384M-14.6%
Cash & Equivalents

$521M

Previous: $334M+56.0%
Total Assets

$3.44B

Previous: $3.12B+10.3%
Stock-Based Comp

$7.8M

Previous: $7.6M+2.6%

Revenue & EPS history

Acuity Brands · Revenue · Quarterly

$776M

Q3 2020-18.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
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 uncertainty around demand and economic recovery, expecting pricing pressure and ongoing tariff-related costs in the fourth quarter of fiscal 2020. The company plans to balance cost management with investments in its transformation and leverage its new product portfolio to capitalize on demand recovery.

Tailwinds

  • Company demonstrates durability of business.
  • Company shows continued ability to generate cash
  • Company plans to continue to balance the management of our costs with the investment in our transformation
  • Company has a robust new product portfolio
  • Company portfolio is positioned to benefit from a recovery in demand

Headwinds

  • Great uncertainty around demand.
  • Uncertainty around the timing of any economic recovery.
  • Company expects pricing pressure in the fourth quarter of fiscal 2020.
  • Company anticipates continued costs related to tariffs in the fourth quarter of fiscal 2020.
  • The pandemic had negative impact on 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 Q3 2020

Historical avgQ3 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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