Acuity Brands, Inc (NYSE: AYI) on Tuesday announced earnings that sent its share price plummeting more than 10% before lunch. Revenue for the Company fell short of expectations and the outlook for the coming quarter is looking grim.
Acuity, one of the world’s leading providers of lighting and building management solutions, posted sales of USD 947.6 Million for the quarter, up an unappealing 0.4% from the year-quarter earlier. FactSet analysts’ consensus estimates predicted sales growth to USD 971.4 Million.
The Company said gross profit for the third quarter decreased by USD 5.5 Million compared to the year prior. The decline was primarily a result of a shift in sales among key customer in the retail sales channel. Adjusted gross profit margin for the quarter declined 110 basis points to 40.5%.
The Atlanta-headquartered company reported adjusted diluted EPS for the quarter increased 6.8% to USD 2.53. This figure compares to an adjusted diluted EPS of USD 2.37 a year ago. Adjusted operating profit decreased by USD 1.8 Million, or 1.3%. Adjusted operating profit margin declined 20 basis points to 14.3%.
Vernon J. Nagel, Chairman, President, and Chief Executive Officer of Acuity commented, “We remain cautiously optimistic about overall market conditions for the remainder of calendar year 2019 and do not believe that the demand outlook has meaningfully changed from our outlook provided last quarter. Third-party forecasts and several leading indicators continue to suggest that the North American lighting market, our primary market, should grow in the low-single digit range in calendar 2019, although some leading indicators of future market demand, such as the Architectural Billings Index and the Dodge Momentum Index, have recently softened. Our wide and varied base of customers generally remains positive about calendar year 2019 growth prospects as many customers continue to have healthy backlogs, though they continue to be concerned about the timing of releases and the potential impact that tariffs and higher prices may have on overall demand.”
Competitors within the building products industry have not fared well on Tuesday either, despite Acuity’s lackluster results. Shares of AZZ Inc. (NYSE: AZZ) are trading 0.37% higher on the day. Shares of Griffin Corporation (NYSE: GFF) are trading approximately 2% lower.