Acuity shares improve 12% on pace with 4Q earnings
Shares of lighting and building management firm Acuity Brands rose more than 12% after reporting better-than-expected quarterly earnings.
Net sales increased 11.4% year-over-year in fiscal fourth quarter 2021 to $ 993 million (Â£ 731.9 million), according to the company’s results presentation. In addition, the company increased its gross profit margins by 10 basis points by improving productivity, increasing sales volumes and increasing prices to overcome higher costs of materials, labor and labor. freight, according to a Press release.
Shares of the Atlanta-based company – which sells a variety of lighting solutions for indoor, outdoor, residential and industrial use – were trading at $ 200 per share, compared to $ 176 per share at the close the previous day. Since the start of the year, stocks have risen nearly 65% ââfrom 2020 levels.
Operating profit margin
Much of the earnings call focused on the company’s ability to increase its operating profit margin to 15.8% of total sales in the fourth quarter, up 150 basis points from a year over year.
This led to operating income of $ 132.8 million in the fourth quarter, up 25.4% year on year.
âThe industry collectively has gone through a series of price increases – we’ve done three – and we’re seeing the benefits. Obviously, these will be cumulative and overlap as we move forward, âsaid Neil Ashe, President and CEO of Acuity Brands, during the earnings call.
Acuity started the year with consecutive quarters with lower net sales year over year, but ended overall.
In the first and second fiscal quarters, sales were down more than 5% year-on-year, but in the third quarter, net sales growth increased by almost 16% compared to the previous year quarter and above. to pre-pandemic levels.
Net sales for the full year increased 4% to $ 3.5 billion while gross margin increased 5.2% to $ 1.5 billion.
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