Lighting technology company Acuity Brands (NYSE:AYI) isn’t typically on people’s radars. However, today the company is garnering attention as Acuity Brands’ fiscal 2022 third-quarter results are lit up with positive data points. As a result, AYI stock is holding up comparatively well in spite of broad-market anxiety.
As inflation and supply-chain bottlenecks beset businesses in mid-2022, Acuity’s Q3 FY2022 results presented the lighting company with an opportunity to shine. And shine it did, as Acuity Brands demonstrated its strength in multiple business segments.
The company’s two main segments are Lighting and Lighting Controls, and Intelligent Spaces Group. On a year-over-year basis, the former segment increased its net sales by 18.6%, while the latter segment’s net sales rose 5.2%.
Overall, Acuity Group increased its net sales by 18% to $1.06 billion, beating the FactSet consensus estimate of $985.4 million. Furthermore, the company increased its adjusted diluted earnings per share (non-GAAP) by 27.1% to $3.52, which is higher than the $2.96 that the analysts had anticipated.
What’s Happening With AYI Stock?
With all of the major stock-market indexes down today — including the S&P 500 and the Nasdaq — there were few bright spots amid the wreckage. Among those bright spots was AYI stock, which managed to stay moderately green in early-session trading.
Perhaps broad-market jitters prevented the Acuity Brands share price from moving higher than it actually did. After all, the company truly knocked it out of the park with its across-the-board quarterly beats.
Even after the release of Acuity Brands’ outstanding fiscal results, the company’s stock shares are still down 26.5% in 2022 so far. With that, Acuity’s trailing 12-month price-to-earnings ratio is 16.12, which may entice some value seekers into the trade.
At least, we can surmise that Acuity Brands Chairman, President and CEO Neil Ashe is confident about his company’s future prospects. “We are executing consistently as a result of significant and ongoing improvements in our business, and we continue to generate value for shareholders through share repurchases,” Ashe assured.
Indeed, Acuity repurchased 2.3 million shares of common stock for a total of $405 million during the first nine months of fiscal 2022. So, just maybe, the CEO’s confidence is justified as there could be a light at the end of the tunnel for holders of AYI stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
