Acuity Inc. Q2 Sales Up 4.9%, Shares Drop 5.09%

By Chris Stiles • Thursday, April 02 10:19 • Permanent Link

Acuity Inc. said fiscal second-quarter net sales rose to $1.1 billion, up $49.4 million, or 4.9%, from a year earlier.

Operating profit climbed to $133.0 million from $110.2 million, an increase of $22.8 million, or 20.7%. Operating margin widened to 12.6% from 11.0%, a gain of 160 basis points.

Adjusted operating profit increased to $176.0 million from $162.9 million, up $13.1 million, or 8.0%. Adjusted operating margin improved to 16.7% from 16.2%, up 50 basis points.

Diluted earnings per share rose to $3.09 from $2.45, an increase of $0.64, or 26.1%. Adjusted diluted EPS increased to $4.14 from $3.73, up $0.41, or 11.0%.

In the company’s lighting segment, Acuity Brands Lighting, sales fell to $817.4 million from $840.6 million, down $23.2 million, or 2.8%. Operating profit declined to $125.1 million from $130.3 million, down $5.2 million, or 4.0%, while operating margin slipped to 15.3% from 15.5%. Adjusted operating profit edged up to $141.8 million from $141.3 million, a gain of $0.5 million, or 0.4%, and adjusted margin rose to 17.3% from 16.8%.

Acuity Intelligent Spaces posted sales of $248.1 million, up $76.6 million from the prior year. Operating profit increased to $28.3 million from $9.9 million, a jump of $18.4 million, and operating margin expanded to 11.4% from 5.8%. Adjusted operating profit rose to $48.0 million from $32.0 million, up $16.0 million, with adjusted margin improving to 19.3% from 18.7%.

For the first six months, net cash from operating activities totaled $229.9 million. The company increased its quarterly dividend by 18% to 20 cents per share and repurchased about 318,000 shares for $106 million year to date. Following these announcements, the company's shares moved -5.09%, and are now trading at a price of $270.34. For more information, read the company's full 8-K submission here.

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