Volatile Movements – Acuity Brands, Inc. (NYSE:AYI)
Acuity Brands, Inc. (NYSE:AYI) began its trading session at $174.68 on Tuesday. During the most recent trading session the minimum price at which share price traded, recorded at $172.11 and hit to max level of $180.25. The company fall -14.57 points or -29.67%. The company finished it trading session at $173.93. It traded total volume of 5.60M shares higher than the average volume of 713,387 shares.
Acuity Brands, Inc. (AYI) recently declared that fiscal 2017 second quarter net sales raised $26.90M, or 3.50 percent, to $804.70M from $777.80M stated in the prior-year period. Operating profit for the second quarter of fiscal 2017 was $108.0M, a boost of $1.30M, or 1.2 percent, over the year-ago period. Net income for the second quarter of fiscal 2017 was $67.30M, a boost of $1.80M, or 2.70 percent, contrast with the prior-year period. Fiscal 2017 second quarter diluted earnings per share (“EPS”) of $1.53 raised $0.04, or 2.70 percent, contrast with $1.49 for the year-ago period.
Adjusted diluted EPS for the second quarter of fiscal 2017 reduced 1.70 percent to $1.77 contrast with adjusted diluted EPS of $1.80 for the year-ago period. Adjusted operating profit for the second quarter of fiscal 2017 reduced $3.50M, or 2.70 percent, to $123.90M, or 15.40 percent of net sales, contrasts with the year-ago period adjusted operating profit of $127.40M, or 16.40 percent of net sales. Adjusted results exclude the impact of amortization expense for attained intangible assets, share-based payment expense, acquisition-related items (counting attained profit in inventory and professional fees), and special charges for streamlining activities. Administration believes these items influenced the comparability of the Company’s results and that adjusted financial measures enhance the reader’s overall understanding of the Company’s current financial performance by making results comparable between periods.
Second Quarter Results:
The 3.50 percent year-over-year growth in fiscal 2017 second quarter net sales was due mainly to a 4 percent increase in volume and about 1 percent from attained revenues from acquisitions, partially offset by about 1 percent net unfavorable change in product prices and mix of products sold (“price/mix”.) The impact from changes in foreign currency exchange rates was less than one percentage point. Sales volume was higher across most key product categories and sales channels in the U.S. and Canada, while volumes declined in both Europe and Mexico. The change in price/mix was due mainly to lower pricing on luminaires, mostly as a result of lower LED component costs. Sales of LED-based products raised about 20 percent from the year-ago period and represented about two-thirds of fiscal 2017 second quarter total net sales.
Year-to-Date Results:
Net sales for the first six months of fiscal 2017 raised 9.30 percent to $1,655.90M contrast with $1,514.40M for the prior-year period. Fiscal 2017 first-half stated results included operating profit of $234.60M, net income of $149.0M, and diluted EPS of $3.39.
Adjusted operating profit for the first half of fiscal 2017 rose $13.80M, or 5.40 percent, to $267.10M, or 16.10 percent of net sales, contrast with prior year’s adjusted operating profit of $253.30M, or 16.70 percent of net sales. Adjusted net income for the first half of fiscal 2017 was $165.50M contrast with $156.60M for the prior-year period, a boost of 5.70 percent. Adjusted diluted EPS for the first half of fiscal 2017 raised $0.18, or 5.0 percent, to $3.76 contrast with adjusted diluted EPS of $3.58 for the year-ago period. Adjusted results exclude amortization expense for attained intangible assets, share-based payment expense, acquisition-related items (counting profit in inventory, professional fees, and certain contract termination costs), special charges for streamlining activities, manufacturing inefficiencies related to the closing of a facility, and a gain on the sale of an investment in an unmerged associate. The total impact of these items on diluted EPS for the first six months of fiscal 2017 and 2016 was $0.37 and $0.52 respectively.
Net miscellaneous income for the six months ended February 28, 2017, included a $7.20M gain associated with the sale of an investment in an unmerged associate which occurred in the first quarter of the fiscal year.
Net cash offered by operating activities totaled $71.60M for the first half of fiscal 2017 contrasts with $119.50M for the year-ago period. Cash and cash equivalents at the end of the second quarter of fiscal 2017 totaled $463.20M, a boost of $50.0M since the starting of the fiscal year.
Outlook:
Mr. Nagel commented, “Although the growth rate of lighting solutions in the North American market in the first half of our fiscal 2017 was lower than anticipated, we continue to see noteworthy long-term growth opportunities. Current quoting activity remains favorable and both short and long-term fundamental drivers of the markets we serve remain positive. Further, third-party forecasts suggest that the softness in market demand that began in the third calendar quarter of 2016 and continued through our second quarter may persist through the remainder of our fiscal 2017. These forecasts indicate that the North American lighting market should return to growth in fiscal 2018. We expect to continue to outperform the growth rates of the markets we serve by executing our strategies focused on growth opportunities for new construction and renovation projects, expansion into underpenetrated geographies and channels, and growth from the continued introduction of new lighting and building administration solutions as part of our integrated, tiered solutions strategy. Based on various leading indicators and our focused investments in key planned areas, we remain bullish regarding the Company’s prospects for continued future profitable growth.”
Mr. Nagel concluded, “We believe the lighting and lighting-related industry in addition to building administration systems will experience solid growth over the next decade, particularly as energy and environmental concerns come to the forefront together with emerging opportunities for digital lighting to play a key role in the Internet of Things. We believe we are exclusively positioned to fully take part in this exciting industry.”
AYI has the market capitalization of $7.67 and its EPS growth ratio for the past five years was 22.30%. The return on assets ratio of the Company was 10.70% while its return on investment ratio was 16.00%. Price to sales ratio was 2.26 while 98.40% of stock was owned by Institutional investors. The Company earned $303.80 million in prior twelve months.