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Category: Acuity Brands (AYI)
Date: 3 April 2021 Stock price of Acuity Brands (AYI) : $168.90 Market Capital of Acuity Brands: $6.08 billion We take a a look at the 2nd quarter 2020 earnings report of Acuity Brands (AYI) a market-leading industrial technology company. The Company designs, manufactures, and brings to market products and services that make the world more brilliant, productive, and connected including building management systems, lighting, lighting controls, and location-aware applications
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I am very proud of our team for another quarter of solid performance. We continue to see signs of a modest recovery in the wider market, while our margin expansion reflects the hard work of our associates who continue to control costs in a more consistent and predictable way - Neil Ashe, Chief Executive Officer of Acuity Brands"
More About Acuity Brands
Acuity Brands, Inc. (NYSE: AYI) is a market-leading industrial technology company. The Company designs, manufactures, and brings to market products and services that make the world more brilliant, productive, and connected including building management systems, lighting, lighting controls, and location-aware applications. Acuity Brands achieves growth through the development of innovative new products and services. Through the Acuity Business System, Acuity Brands achieves customer-focused efficiencies that allow the Company to increase market share and deliver superior returns. The Company looks to aggressively deploy capital to grow the business and to enter attractive new verticals. Acuity Brands is based in Atlanta, Georgia, with operations across North America, Europe, and Asia. The Company is powered by approximately 11,000 dedicated and talented associates.
Overview of Acuity brands 2nd quarter 2021 earnings
Second Quarter 2021 Highlights
- Continued Fundamental Improvements Across the Business Despite Lower Volume Resulting From the Pandemic
- Net Sales Declined 5.8% versus Prior Year
- Gross Profit Margin Expansion of 170 Basis Points versus Prior Year
- Outstanding Share Count Reduced By Approximately 9.6% Since May 2020
- Acuity Brands Reaches Carbon Neutrality Across its Operations
Acuity Brands management commentary on 2nd quarter 2021 earnings
ATLANTA, March 31, 2021 (GLOBE NEWSWIRE) -- Acuity Brands, Inc. (NYSE: AYI) (the "Company") a market-leading industrial technology company announced net sales of $776.6 million for the second quarter of fiscal 2021 ended February 28, 2021, a decrease of $47.6 million or 5.8 percent, as compared to the second quarter of fiscal 2020. Diluted earnings per share was $1.74, an increase of 20.8 percent over prior year and adjusted diluted earnings per share was $2.12 per share, an increase of 15.2 percent over prior year. "I am very proud of our team for another quarter of solid performance. We continue to see signs of a modest recovery in the wider market, while our margin expansion reflects the hard work of our associates who continue to control costs in a more consistent and predictable way," stated Neil Ashe, Chief Executive Officer of Acuity Brands. "Earlier this month, we advanced our sustainability journey and highlighted our ongoing commitment to the environment, our people, and our communities, with the announcement that we had achieved carbon neutrality in our operations."
Cash Flow and Capital Allocation
Net cash from operating activities of $212.6 million was approximately flat, declining $2.1 million, or 1.0 percent for the first half of fiscal 2021 as compared to the prior year. During the first half of 2021, the Company repurchased 3.2 million shares of common stock for a total of $338.3 million at an average price of $104 per share. The Company had approximately 4.4 million shares remaining under its most recent authorization at the end of the second fiscal quarter of 2021. Since May of 2020, the Company has reduced the outstanding share count by approximately 10 percent. Carbon Neutrality Statement On March 22, 2021, the Company announced to associates that it had achieved 100 percent carbon neutrality in operations through a combination of carbon reduction and offsetting measures. The Company will continue to update the market on ongoing efforts through the EarthLIGHT report, in periodic company press releases and through the sustainability section of the Company website.
Outlook
A further discussion relating to the ongoing impact of COVID-19 and the economic recovery will take place on our fiscal 2021 second-quarter conference call.
Cash Flow and Capital Allocation
Net cash from operating activities of $212.6 million was approximately flat, declining $2.1 million, or 1.0 percent for the first half of fiscal 2021 as compared to the prior year. During the first half of 2021, the Company repurchased 3.2 million shares of common stock for a total of $338.3 million at an average price of $104 per share. The Company had approximately 4.4 million shares remaining under its most recent authorization at the end of the second fiscal quarter of 2021. Since May of 2020, the Company has reduced the outstanding share count by approximately 10 percent. Carbon Neutrality Statement On March 22, 2021, the Company announced to associates that it had achieved 100 percent carbon neutrality in operations through a combination of carbon reduction and offsetting measures. The Company will continue to update the market on ongoing efforts through the EarthLIGHT report, in periodic company press releases and through the sustainability section of the Company website.
Outlook
A further discussion relating to the ongoing impact of COVID-19 and the economic recovery will take place on our fiscal 2021 second-quarter conference call.
Acuity Brands (AYI) stock price history over the last 5 years
The image below shows the stock price history of Acuity Brands (AYI) over the last 5 years. And its not been a good time for Acuity stockholders with the stock declining by -33.7% over the last 5 years. No investor would want to see to those type of returns.
The stock of Acuity Brands is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Acuity Brands stock is positive at this point in time.
The stock of Acuity Brands is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Acuity Brands stock is positive at this point in time.
Acuity Brands (AYI) stock price history over the last 5 years
Latest stock valuation of Acuity Brands
So what is Acuity Brands stock worth based on their 2nd quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Acuity Brands (AYI) at $144.60 a stock
We therefore believe the stock of Acuity Brands (AYI) is overvalued at its current price of $168.90
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $144.60 thus a good entry point into Acuity Brands would be at $131 or below.
We expect the stock of Acuity Brands to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued
We therefore believe the stock of Acuity Brands (AYI) is overvalued at its current price of $168.90
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $144.60 thus a good entry point into Acuity Brands would be at $131 or below.
We expect the stock of Acuity Brands to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued
Next earnings release of Acuity Brands
It is expected that Acuity Brands (AYI) will release their 1st quarter 2021 earnings report in late June 2021
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