Acuity Brands Inc (NYSE:AYI) stock rose 5.23% (As on October 4, 11:33:25 AM UTC-4, Source: Google Finance) after the company reported a fall in fourth-quarter sales due to a decline at its lighting business. However, earnings surprised to the upside, beating analysts’ expectations, as its operating margin improved. Acuity Brands Lighting and Lighting Controls (“ABL”) generated net sales of $944.2 million in the fourth quarter of fiscal 2023, a decrease of $110.8 million, or 10.5 percent, compared to the prior year. ABL adjusted operating profit was $158.7 million in the fourth quarter of fiscal 2023, a decrease of $3.0 million compared to the prior year. Intelligent Spaces Group (“ISG”) generated net sales of $71.9 million in the fourth quarter of fiscal 2023, an increase of $10.5 million, or 17.1 percent, compared to the prior year as Distech continued to win business across new and existing customers. This quarter, the company also had a modest benefit from the acquisition of KE2 Therm. ISG adjusted operating profit was $14.2 million in the fourth quarter of fiscal 2023, a decrease of $0.4 million compared to the prior year.

AYI in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.97, beating the analysts’ estimates for the adjusted earnings per share of $3.57, according to analysts surveyed by Zacks Consensus Estimate. The company had reported 9 percent decline in the adjusted revenue to $1.01 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $1.02 billion. Adjusted operating profit was $162.3 million in the fourth quarter of fiscal 2023, a decrease of $7.4 million compared to the prior year. Net cash from operating activities was $578.1 million for the full year of fiscal 2023, an increase of $261.8 million compared to the prior year due primarily to an improvement in our working capital. The company has improved both days of inventory and accounts receivable compared to the end of fiscal 2022.

During fiscal 2023, the Company repurchased approximately 1.6 million shares of common stock for a total of $269 million. In fiscal 2023, the Company invested $67 million in capital expenditures. Additionally, the company has declared a quarterly dividend of 13 cents per share. The dividend is payable on November 1, 2023, to shareholders of record on October 18, 2023.