Shares of Acuity Brands Inc. tumbled more than 9% on Tuesday, as the company posted weaker-than-expected second-quarter results. Notably, the company reported sales of $943.6 million for the three months ended February 28, up 3.8% YoY but missing estimates of $958.5 million. The earnings per share stood at $3.48, compared to $2.72 in the year-ago period, while adjusted earnings per share came to $3.06, beating the expected $2.73.
Importantly, Chief Financial Officer Karen Holcom stated that the sales were largely driven by price increases, while Chief Executive Neil Ashe said the company began to witness a slowing in the order rate for their project business. He further revealed that the slowed order rate is likely due to the shorter lead times as supply chain challenges start to abate.
Acuity Brands Inc is a leading American company based in Atlanta, Georgia. It manufactures lights, components, and building-management solutions, catering to the global lighting industry. Founded by R. Kelley Dunne in 2001, the company has grown exponentially in recent years, with the total estimated value being around $6.8 billion as of 2021.
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