Acuity Brands, Inc. (NYSE:AYI) has reported a fall in fourth-quarter sales due to a decline at its lighting business. However, earnings surprised to the upside, beating analysts’ expectations, as its operating margin improved.
The company's Acuity Brands Lighting (ABL) business generated sales of $944.2 million for the quarter, down 10.5% from 4Q 2022. The decline was cushioned by a 17% jump in sales to $71.9 million at its Intelligent Spaces Group (ISG) business.
Overall sales fell 9% to $1.01 billion, from $1.11 billion a year earlier, coming in below the $1.02 billion expected by analysts surveyed by Zacks Consensus Estimate.
Adjusted diluted earnings per share rose by 2 cents to $3.97, beating forecasts for a decline to $3.57.
"Our focus on margin and cash generation led to increased adjusted operating profit margin and higher adjusted diluted earnings per share, despite a decline in sales in the lighting business," the company’s chairman and CEO Neil Ashe said in a statement.
"This quarter concluded a successful year. We delivered strong financial performance, continued to improve our businesses and allocated capital effectively.”
For the full year, net sales decreased by 1.3% to $3.95 billion while adjusted EPS rose 9.5% to $14.05.
Contact the author at stephen.gunnion@proactiveinvestors.com