QQQ   320.11 (-0.51%)
AAPL   164.95 (-0.24%)
MSFT   280.09 (-1.00%)
META   170.77 (+2.19%)
GOOGL   117.37 (-0.09%)
AMZN   139.02 (-1.26%)
TSLA   872.37 (+0.91%)
NVDA   176.11 (-7.26%)
NIO   20.25 (+0.15%)
BABA   90.60 (-2.12%)
AMD   99.78 (-2.47%)
MU   61.47 (-1.59%)
T   18.05 (-1.63%)
CGC   3.17 (+17.41%)
GE   75.37 (+1.36%)
F   15.86 (+3.66%)
DIS   109.15 (+2.36%)
AMC   23.92 (+7.84%)
PYPL   96.36 (+1.09%)
PFE   49.43 (+0.32%)
NFLX   233.59 (+3.00%)
QQQ   320.11 (-0.51%)
AAPL   164.95 (-0.24%)
MSFT   280.09 (-1.00%)
META   170.77 (+2.19%)
GOOGL   117.37 (-0.09%)
AMZN   139.02 (-1.26%)
TSLA   872.37 (+0.91%)
NVDA   176.11 (-7.26%)
NIO   20.25 (+0.15%)
BABA   90.60 (-2.12%)
AMD   99.78 (-2.47%)
MU   61.47 (-1.59%)
T   18.05 (-1.63%)
CGC   3.17 (+17.41%)
GE   75.37 (+1.36%)
F   15.86 (+3.66%)
DIS   109.15 (+2.36%)
AMC   23.92 (+7.84%)
PYPL   96.36 (+1.09%)
PFE   49.43 (+0.32%)
NFLX   233.59 (+3.00%)
QQQ   320.11 (-0.51%)
AAPL   164.95 (-0.24%)
MSFT   280.09 (-1.00%)
META   170.77 (+2.19%)
GOOGL   117.37 (-0.09%)
AMZN   139.02 (-1.26%)
TSLA   872.37 (+0.91%)
NVDA   176.11 (-7.26%)
NIO   20.25 (+0.15%)
BABA   90.60 (-2.12%)
AMD   99.78 (-2.47%)
MU   61.47 (-1.59%)
T   18.05 (-1.63%)
CGC   3.17 (+17.41%)
GE   75.37 (+1.36%)
F   15.86 (+3.66%)
DIS   109.15 (+2.36%)
AMC   23.92 (+7.84%)
PYPL   96.36 (+1.09%)
PFE   49.43 (+0.32%)
NFLX   233.59 (+3.00%)
QQQ   320.11 (-0.51%)
AAPL   164.95 (-0.24%)
MSFT   280.09 (-1.00%)
META   170.77 (+2.19%)
GOOGL   117.37 (-0.09%)
AMZN   139.02 (-1.26%)
TSLA   872.37 (+0.91%)
NVDA   176.11 (-7.26%)
NIO   20.25 (+0.15%)
BABA   90.60 (-2.12%)
AMD   99.78 (-2.47%)
MU   61.47 (-1.59%)
T   18.05 (-1.63%)
CGC   3.17 (+17.41%)
GE   75.37 (+1.36%)
F   15.86 (+3.66%)
DIS   109.15 (+2.36%)
AMC   23.92 (+7.84%)
PYPL   96.36 (+1.09%)
PFE   49.43 (+0.32%)
NFLX   233.59 (+3.00%)

Acuity Brands, Inc Illuminates An Attractive Opportunity

Acuity Brands, Inc Illuminates An Attractive Opportunity

Acuity Brands Wobbles After Strong Q3 Results 

Acuity Brands (NASDAQ: AYI) has been in a downtrend for the last two quarters for no other reason than fear of slowing growth, tightening margins, and earnings weakness but those fears were overblown. The move downward was driven in large part by institutions that were selling heavily in the first quarter of the year. Now that the company has outperformed expectations for the first half of the year and given no indication of upcoming weakness we think there is a bottom in play. Not only do the results suggest a higher valuation is warranted but the institutional activity has taken on a new tone. No longer are the institutional players heavy sellers or even net-sellers, they’ve begun to accumulate the stock again and we think the activity will gain momentum now the Q2 results are in. 

Looking at the analyst activity, we think there is a significant amount of upside as well. There have been no commentaries since the Q2 report, not yet, but we think the analysts are rethinking a recent round of price target reductions that has the Marketbeat.com consensus hovering near $210. The takeaway here is the analysts believe the stock has at least a 35% upside and rate the stock a Moderate Buy and that was before the strong Q2 report. In our view, the stock may not receive any upgrades but we are expecting to see the consensus target trend higher over the next few months. 

Acuity Brands Grows Revenue, Widens Margin 

Acuity Brands had a very strong quarter underpinned by gains in the retail and construction end of the lighting market. The company reported $1.06 billion in net sales for a gain of 17.8% that beat the Marketbeat.com consensus by 725 basis points. On a segment basis, the core Acuity Brands segment led with a gain of 18.6% driven by a 24% gain in retail sales and a 34% gain in Construction sales. Within that group, Independent sales grew by 15.6% and Direct sales were flat YOY. The much smaller ISG segment, Intelligent Solutions Group i.e. smart-lighting, grew by a smaller 5.2%. 


Moving on to the earnings, the news is a little mixed but nonetheless bullish for the stock. The company reported a 100 basis point contraction in the gross margin that was offset by a 40 basis point improvement in the operating margin. On an adjusted basis, the operating margin improved a tepid 10 basis points but expand it did and all margins were better than expected. On the bottom line, the GAAP $3.07 grew by 30% YOY while the adjusted $3.52 is up 27% YOY and beat by $0.61 or 2000 basis points. That’s some strength. 

The company did not give any guidance but we see underlying strength and momentum in the business. The risk is that demand may fall off in the back half of the year as rates rise and housing starts to stall, but cash flow and earnings should remain strong enough to support the dividend and buybacks. The takeaway here is the dividend is safe and buybacks should be expected to continue. The company bought back $296 million worth of shares this quarter, about 5.5% of the market cap, and it improved the balance sheet while increasing inventory. 

The Technical Outlook: Acuity Brands Is At A Bottom 

Acuity Brands is at the bottom but it may not be ready to rebound just yet. The price action hit a new low the week before earnings were released and a bounce is in play but the market looks indecisive. In this light, price action may retest the recent low or even move lower due to general market conditions and not the business fundamentals. In this scenario, the stock will become more attractive but there is an equal risk in waiting. If the market is able to hold the current levels, the stock could easily bounce back to the $170 level or higher. 

Acuity Brands, Inc Illuminates An Attractive Opportunity

7 Dividend Stocks That Earn 10% Every Month

Investors who are in or nearing their retirement years know the need for reliable income moves to the top of the priority list. That makes investing in dividend stocks a logical choice. Most dividend stocks pay dividends on a quarterly basis. However, for individuals who lack an income stream from a job, quarterly dividends of any size create an uneven income stream. That can be difficult in times of economic volatility, and particularly when facing rising inflation.

One solution for these investors is to purchase a special class of dividend stocks that pay dividends monthly. Monthly dividend income is a way to create predictable cash flow. And investors also get access to stocks that have a high dividend yield, sometimes in excess of 10%. That's nearly 10x the 1.6% average dividend yield of stocks in the S&P 500. And because of these company's business models, these yields are sustainable.  

In this special presentation, we'll look at 7 monthly dividend stocks that have a yield of over 10% as of June 2022.

View the "7 Dividend Stocks That Earn 10% Every Month".

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFind Investing Opportunities For The Rest of 2022

Today, Kate’s guest is Rhys Williams, chief investment officer for the Opportunistic All Cap Equity, a long-short strategy at Spouting Rock Asset Management.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.