Acuity Brands Announces Quarterly Dividend Before Earnings
Acuity Brands, Inc. (NYSE: AYI) is an American industrial technology company. The company offers building management systems, lighting, lighting control and location-based applications. Acuity Brands operates in North America, Europe and Asia. Acuity Brands employs approximately 11,000 people who help design, manufacture, and deliver products and services for the lighting and facility management markets. On the last review, AYI rose 0.3% to $ 145.
AYI saw remarkably strong growth over the past week of trading. During this period in particular, Acuity Brands stocks rose 10%. AYI is also up 21% since the start of the year. Acuity Brands stock is also up 76% year over year, up over 100% since its May low of $ 70.55. AYI’s shares are also just below the new two-year high of $ 148.63 this morning, with long-term support provided by the 50-day moving average.
On March 25, Acuity Brands declared a quarterly dividend of $ 0.13 per share. The dividend is payable to shareholders on May 3rd. Acuity Brands stock has a forward dividend of $ 0.52 and a dividend yield of 0.36%. In addition, Acuity Brands is expected to release its second quarter fiscal year results before the store opens on Wednesday March 31st.
Acuity Brands has has managed to beat earnings expectations in three of the last four earnings reports. For the second quarter of 2020, AYI missed analysts’ estimates by a margin of $ 0.06 and reported earnings per share (EPS) of $ 1.84. For the third quarter of 2020 Acuity Brands increased its earnings per share to $ 1.94, beating expectations by a significant margin of $ 0.72. For the fourth quarter of 2020 Acuity Brands recorded a further increase in earnings to $ 2.35 per share. The company also beat estimates by $ 0.32. In its most recent quarterly report, Acuity Brands posted earnings per share of $ 2.03, exceeding expectations by $ 0.19.
Basically, Acuity Brands stock has a decent valuation but has struggled to grow its sales and net income in recent years. In fiscal 2020, the company’s revenue declined nearly $ 350 million, or 9.5%, which also followed a slight decline in fiscal 2019. In addition, Acuity Brands net income fell $ 70 million in fiscal 2020, a massive 25% decline. In fiscal 2019, the company was able to reduce net profit by 5.5%.
Overall, Acuity Brands stock trades at a discount to what it could potentially produce right now. The biggest question from Acuity Brands is whether the company will continue its recent downward trend. This upcoming earnings report should be a good indicator of the company’s future performance potential.