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Aug 31, 2020

Acuity Brands Q4 2020 Earnings Report

Acuity Brands' Q4 2020 performance was impacted by the COVID-19 pandemic, but the company achieved strong financial results and managed to maintain gross profit margins.

Key Takeaways

Acuity Brands reported Q4 net sales of $891 million, a decrease of 5.0% compared to the prior-year period. Diluted earnings per share (EPS) of $1.87 decreased by 22.7% and adjusted diluted EPS of $2.35 decreased by 14.5% compared with the prior-year period. The company managed to maintain gross profit margins despite a strategic investment in price.

Net sales decreased by 5.0% compared to the prior-year period, totaling $891 million.

Gross profit margin remained flat at 42.1% compared to the prior-year period.

Diluted earnings per share (EPS) decreased by 22.7% to $1.87.

Adjusted diluted EPS decreased by 14.5% to $2.35.

Total Revenue
$891M
Previous year: $938M
-5.0%
EPS
$2.35
Previous year: $2.75
-14.5%
Gross Profit
$375M
Previous year: $395M
-5.0%
Cash and Equivalents
$561M
Previous year: $461M
+21.6%
Free Cash Flow
$110M
Previous year: $170M
-35.2%
Total Assets
$3.49B
Previous year: $3.17B
+10.1%

Acuity Brands

Acuity Brands

Forward Guidance

Acuity Brands expects weakness in nonresidential building activity due to the uncertainty around the economic recovery caused by the COVID-19 pandemic. However, they anticipate leveraging their product portfolio and digital transformation to expand market share in fiscal year 2021.

Positive Outlook

  • Leverage expanded product portfolio in lighting
  • Leverage expanded product portfolio in lighting controls
  • Leverage expanded product portfolio in intelligent buildings
  • Investment in digital transformation
  • Opportunity to expand market share

Challenges Ahead

  • Uncertainty around the economic recovery
  • Weakness in nonresidential building activity
  • Impact of COVID-19 pandemic remains
  • Challenging market conditions
  • Economic recovery is uncertain