Acuity Brands Inc. (AYI) announced fiscal third-quarter earnings of 54 cents per share, missing the consensus forecast by more than 5% on weak non-residential construction activity.
Shares of this Zacks #4 Rank (“Sell”) stock have slipped more than 6% so far today on volume of approximately 491,000, which is well above the average daily volume of about 351,000.
Revenue fell 23% to $397 million as construction of commercial and office buildings remained sluggish amid the downturn and tight real estate credit markets.
“Looking ahead, we continue to foresee a very difficult economic environment, particularly for non-residential construction activity, a primary market for us,” said CEO Vernon Nagel.
However, Acuity expects fiscal fourth-quarter results to benefit from its ongoing streamlining initiatives and lower material costs.
Two of 5 covering analysts lowered expectations over the past month for the year ending August 2009, sending the consensus estimate down 3 cents to $2.43 per share. The most accurate estimate is even more bearish at $2.41 per share.
“AYI” Free Stock Analysis: Buy? Sell? Hold?
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