Acuity Brands, Inc. (NYSE:AYI) saw its shares leap on fourth-quarter sales growth.
The company said Q4 sales improved 11.4% year-over-year to $992.7 million, beating the consensus of $963.96 million.
The gross margin expanded by 10 bps to 42.2%, impacted by higher material, labour, and freight costs.
Sales by segments: Acuity Brands Lighting and Lighting Controls $946.9 million (+11% Y/Y), Intelligent Spaces Group $50.5 million (+23.5% Y/Y).
Adjusted EPS improved to $3.27 from $2.35 in 4Q20, beating the consensus of $2.85.
The operating income increased by 25.4% Y/Y to $132.8 million, and the margin expanded by 150 bps to 13.4%. Adjusted operating margin expanded by 110 bps to 15.8%.
Acuity Brands generated cash from operating activities year-to-date of $408.7 million, compared to $504.8 million a year ago.
The company repurchased 3.8 million shares for a total of $434.9 million at an average price paid of $114 per share for the fiscal and has ~3.8 million shares remaining under its most recent share purchase authorization.
Said CEO Neil Ashe, "I am proud of the progress our team made to transform our Company during fiscal 2021. We improved our operations and delivered solid performance in a challenging environment.
"We are entering fiscal 2022 from a position of strength with a diverse and capable team, who are driven by our values to deliver results for our customers, our investors and our environment."
Recently, Credit Suisse lowered Acuity Brands Price Target to $209 (implying an upside of 18.6%) from $212 and maintained an outperform rating.
AYI shares traded higher by $17.38, or 9.9%, to $193.71 in Wednesday.
