AYI Stock: Why It Substantially Increased This Week

By Amit Chowdhry ● Oct 7, 2021
  • The stock price of Acuity Brands, Inc. (NYSE: AYI) increased by over 14% over the past few trading days. This is why it happened.

The stock price of Acuity Brands, Inc. (NYSE: AYI) increased by over 14% over the past few trading days. Investors are responding positively to the company’s fiscal 2021 fourth quarter and full-year results.

The company announced net sales of $992.7 million for the fiscal fourth quarter ended August 31, 2021, an increase of $101.5 million, or 11.4% as compared to the same period in 2020. And the diluted earnings per share was $2.72, an increase of 45.5 percent over the prior year, and adjusted diluted earnings per share was $3.27 per share, an increase of 39.1 percent over the prior year.

Q4 Results

— The company reported gross profit of $419.3 million increased $44.2 million, or 11.8% as compared to the prior year. And gross profit was 42.2% of net sales for the fourth quarter of fiscal 2021, an increase of 10 basis points from 42.1% in the fourth quarter of fiscal 2020. The gross profit margin was impacted this quarter by higher material, labor, and freight costs. This impact was mostly offset by our ongoing product and productivity improvements, increased sales volume and benefits from recent price increases.

— Operating profit of $132.8 million increased $26.9 million, or 25.4%, as compared to the prior year. The operating profit was 13.4% of net sales for the fourth quarter of fiscal 2021, an increase of 150 basis points from 11.9% for the fourth quarter of fiscal 2020 driven by gross profit improvement and leverage of our operating expenses.

— The adjusted operating profit of $156.4 million increased $25.7 million, or 19.7%, for the fourth quarter of fiscal 2021 as compared to the prior year. And adjusted operating profit was 15.8% of net sales for the fourth quarter of fiscal 2021, an increase of 110 basis points from 14.7% in the fourth quarter of fiscal 2020.

— The net income of $98.1 million increased $24.4 million, or 33.1%, as compared to the prior year. And the diluted earnings per share of $2.72 increased $0.85, or 45.5 percent, for the fourth quarter of fiscal 2021, as compared to $1.87 for the fourth quarter of fiscal 2020.

— The adjusted net income of $117.7 million increased $24.9 million, or 26.8%, as compared to the prior year. Adjusted diluted earnings per share of $3.27 increased $0.92, or 39.1 percent, as compared to $2.35 for the fourth quarter of fiscal 2020.

Full-Year 2021 Summary

— Net sales were $3.5 billion for the full year of fiscal 2021, an increase of $134.7 million or 4%, as compared to fiscal 2020.

— Gross profit of $1.5 billion increased $72.6 million, or 5.2%, in fiscal 2021, as compared to the prior year. And gross profit margin was 42.6 percent for fiscal 2021, an increase of 40 basis points from 42.2 percent in fiscal 2020.

— The operating profit of $427.6 million increased $73.7 million, or 20.8%, in fiscal 2021, as compared to the prior year. And operating profit was 12.4 percent of net sales for fiscal 2021, an increase of 180 basis points versus the prior year. The adjusted operating profit of $506.3 million increased $50 million, or 11%, for fiscal 2021 as compared to the prior year. And adjusted operating profit was 14.6% of net sales for fiscal 2021, an increase of 90 basis points versus the prior year.

— The net income of $306.3 million increased $58 million in fiscal 2021, or 23.4%, as compared to the prior year. And diluted earnings per share of $8.38 increased $2.11, or 33.7 percent, for fiscal 2021, as compared to $6.27 for fiscal 2020.

— The adjusted net income of $371.7 million increased $44.4 million in fiscal 2021, or 13.6%, as compared to the prior year. And adjusted diluted earnings per share of $10.17 increased $1.90 in fiscal 2021, or 23%, as compared to $8.27 for fiscal 2020.

KEY QUOTE:

“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.”

— Neil Ashe, Chief Executive Officer of Acuity Brands

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.