NEW YORK (AP) — Shares of Acuity Brands Inc., which makes lighting fixtures, climbed Thursday after it reported earnings for its latest quarter.
THE SPARK: Late Wednesday, the Atlanta-based company said its fiscal fourth-quarter profit jumped 26 percent to $34.2 million, or 79 cents per share. Sales rose 12 percent to $496.2 million.
THE ANALYSIS: Carter Shoop at KeyBanc Capital Markets upgraded the stock to "Buy" after the report, saying Acuity's focus on fixtures with light-emitting diodes, or LEDs, should let it grow faster than its rivals. LEDs are durable and use little energy, but are as yet expensive compared to the alternatives.
At the same time, Shoop trimmed his earnings estimate for the fiscal year that just started, based on the recent results.
Craig Irwin at Wedbush Morgan was less charitable in his interpretation of the results, saying they were of "low quality," with a lower-than-expected tax rate helping the company meet the average analyst forecast. LED fixtures are contributing to sales growth, but have lower profit margins, he noted. He kept a "Neutral" rating on the shares.
SHARE ACTION: Acuity's shares jumped $2.95, or 7.4 percent, to $42.90 in midday trading. They're still well below their peak above $60, last hit in May.
0 comments:
Post a Comment