Acuity Brands Clocks Mixed Q3 Performance, Completes Acquisition Of KE2 Therm
Portfolio Pulse from Anusuya Lahiri
Acuity Brands, Inc reported a 5.7% YoY decline in Q3 FY23 net sales to $1.0 billion, missing the consensus of $1.05 billion. However, its adjusted EPS of $3.75 beat the consensus of $3.71. The company also completed the acquisition of KE2 Therm and continued to repurchase its shares. Despite the sales decline, the company expanded its adjusted operating profit margin and generated strong cash flow from operations.
June 29, 2023 | 2:03 pm
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Acuity Brands reported a decline in Q3 FY23 net sales but beat EPS estimates. The company also completed the acquisition of KE2 Therm and continued share repurchases. Despite lower sales, the company expanded its profit margin and generated strong cash flow.
The mixed Q3 results, with a decline in sales but a beat on EPS, may have a neutral impact on the stock. The acquisition of KE2 Therm could provide long-term benefits, but the immediate impact may be limited. The continuation of share repurchases could provide some support to the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100