AYI - Acuity Brands, Inc - Four analysts raised their estimates for this quarter and three did so for next quarter

Acuity Brands, Inc. (AYI), which was last highlighted as a Growth and Income pick on Nov 1, is up nearly 26%. The company recently reported record earnings per share, net income and net sales for both the second quarter and first half of fiscal 2007. Consensus estimates have risen over the past 30 days. Earnings per share are projected to grow 23% over the next 3-5 years. AYI is currently yielding 0.97%. Full Analysis Acuity Brands, Inc., through its subsidiaries, engages in the design, production and distribution of lighting equipment and specialty products worldwide. The company distributes its indoor and outdoor lighting fixtures for commercial and institutional, industrial, infrastructure and residential applications for various markets throughout North America and select international markets. Its specialty products include cleaners, deodorizers, sanitizers and pesticides. AYI, which was last presented as a Growth and Income pick on Nov 1, is up nearly 26%. The company continues to beat the Street’s earnings expectations and analysts are still raising their profit forecasts. When AYI reported second-quarter fiscal 2007 profits of 55 cents per share on Apr 4, it marked the fourth straight quarter in which the company surprised to the upside. Analysts were calling for 49 cents. Compared to earnings of 32 cents per share in the prior-year period, the result equated to an impressive 71.9% year-over-year improvement. Revenues jumped to $575.4 million from $549.6 million. Earnings per share, net income and net sales were new records for AYI. Furthermore, AYI achieved record earnings per share, net income and net sales for the first six months of fiscal year 2007. Earnings per share amounted to $1.32, versus 80 cents per share in the prior-year period. Net income soared 58.6% to $57.9 million and net sales increased 6.7% to $1.19 billion. Chairman, President and CEO Vernon J. Nagel stated, "We are very pleased with our progress in fiscal 2007. In the second quarter, we once again produced record results that exceeded our internal expectations. Our performance on a consolidated basis continues to reflect the benefits obtained from our pricing initiatives including ongoing product price reviews, new products and services, all-time high service levels and enhanced productivity in key areas of our business." Consensus estimates for this quarter and next are up five cents and two cents to 88 cents and $1.16, respectively, over the past 30 days. Four analysts raised their estimates for this quarter and three did so for next quarter. Profit forecasts for this year and next have risen 17 cents and 22 cents to $3.40 and $3.93, respectively, over the past month. Upward revisions were submitted by four analysts for this year while three analysts boosted their estimates for next year. Earnings per share are projected to grow 23% over the next 3-5 years, with the industry expected to grow by 21%. On Mar 29, the Board of Directors declared a quarterly cash dividend of 15 cents per share. AYI has a current dividend yield of 0.97%. The company’s return on equity tops that of the industry average—23% compared to 22%. AYI is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home