Acuity Brands to Report Q3 Earnings: What to Expect This Season?

Acuity Brands, Inc. AYI is scheduled to announce third-quarter fiscal 2026 results on June 25, before the opening bell.In the last reported quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate by 3.4% while the net sales missed the same by 1.9%. On a year-over-year basis, both metrics increased 11% and 4.9%, respectively.Acuity Brands beat earnings estimates in each of the trailing four quarters, with an average surprise of 8.4%.How are Estimates Placed for AYI Stock?For the fiscal third quarter, AYI’s Zacks Consensus Estimate for earnings per share (EPS) has increased to $5.20 from $5.16 in the past seven days. The estimated figure indicates an increase of 1.6% from $5.12 per share reported in the year-ago quarter.The consensus mark for net sales is pegged at $1.18 billion, indicating a 0.4% increase from the year-ago reported figure.Acuity, Inc. Price and EPS Surprise Acuity, Inc. price-eps-surprise | Acuity, Inc. QuoteFactors to Shape Acuity Brands’ Q3 ResultsSalesDuring the fiscal third quarter, Acuity Brands' top-line performance is expected to have inched up year over year, as the Acuity Intelligent Spaces (AIS) segment continues to be a key growth engine. The AIS segment is likely to have been sailing the ship forward through enhanced building intelligence, efficiency and user experience through platforms Atrius and Distech Controls. The acquisition and integration of QSC, LLC in January 2025 into the AIS segment is expected to have boosted the growth further. The integration of QSC continues to progress well, enabling cross-selling opportunities and expanding capabilities through the Q-SYS platform. Besides, recent innovations, including scalable AV solutions for smaller collaboration spaces and enhanced building automation offerings, further strengthen the segment’s value proposition.This growth trajectory is likely to have been subdued to some extent during the fiscal third quarter by the weak performance of the Acuity Brands Lighting (ABL) segment. The segment’s poor contribution to Acuity Brands’ sales performance is expected to have been due to lower net sales within the direct sales network.Segment-wise, for the to-be-reported quarter, our Zacks model predicts total ABL segment (contributed 77.4% to the second quarter of fiscal 2026 net sales) revenues to decline 0.3% year over year to $920.1 million. Within the ABL segment, we expect Independent Sales Network and Retail revenues to increase 1.8% and 0.7%, respectively, while Corporate Accounts, Direct Sales Network and Other revenues are anticipated to decrease 4.1%, 11.6% and 3.6%, respectively, year over year.Our model predicts the AIS segment’s (contributed 23.5% to the second quarter of fiscal 2026 net sales) revenues in the fiscal third quarter to climb 13.1% year over year to $298.8 million.MarginsThe bottom line is likely to have been supported by continued cost discipline, productivity improvements and a favorable business mix, with the higher-margin AIS segment contributing meaningfully to overall profitability. Strategic pricing actions and ongoing operational efficiencies are likely to have helped mitigate external pressures, including tariffs, while strong cash flow generation and disciplined capital allocation are expected to have further supported earnings growth.We expect the company’s adjusted EBITDA margin to increase 40 basis points (bps) year over year in the fiscal third quarter to 20.4%. We project adjusted operating margin to inch up 20 bps to 19% year over year.However, these tailwinds are expected to have been partially offset by persistent softness in the lighting market, tariff-related cost volatility and the normalization of previously elevated backlog levels, which are likely to have weighed on near-term growth momentum.What Our Model Indicates for AYIOur proven model does predict an earnings beat for Acuity Brands this time around. The company has the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat.AYI’s Earnings ESP: The company has an earnings ESP of +0.63%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.AYI’s Zacks Rank: The stock currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks With the Favorable CombinationHere are some other companies in the Zacks Business Services sector that, according to our model, have the right combination of elements to post earnings beats in the quarter to be reported.V2X, Inc. VVX has an Earnings ESP of +0.41% and currently carries a Zacks Rank of 2.V2X’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 22.8%. V2X’s earnings for the third quarter of 2026 are expected to increase 9%.Insperity, Inc. NSP presently has an Earnings ESP of +6.06% and a Zacks Rank of 3.Insperity’s earnings beat estimates in one of the trailing four quarters and missed on the other three occasions, with an average negative surprise of 61.1%. Insperity’s earnings for the third quarter of 2026 are expected to increase 26.9%.WEX Inc. WEX currently has an Earnings ESP of +4.82% and a Zacks Rank of 3.WEX’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 4.8%. WEX’s earnings for the third quarter of 2026 are expected to increase 28.1%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks