Acuity Brands Inc (NYSE:AYI), a market-leading industrial technology company, stock rose 2.57% (As on April 4, 11:30:28 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24 driven by increased focus on margins and cash generation. Acuity Brands Lighting and Lighting Controls or ABL’s net sales declined 5.3% year over year to $843.5 million. Net sales in the Independent Sales Network were down 3.6% year over year to $612.3 million. Sales from the Direct Sales Network were down 1.8% from the prior-year period’s level to $93 million. Retail sales of $46.4 million dropped 7.9% from the prior-year quarter’s levels. Sales in the Corporate Accounts channel declined 38.1% from the prior year’s levels to $29.4 million. The Original equipment manufacturer and other channels generated sales of $53.7 million, down 4.8% from the prior-year period’s levels. Intelligent Spaces Group or ISG generated net sales of $68.1 million, up 17% year over year.

AYI in the second quarter of FY 24 has reported the adjusted earnings per share of $3.38, beating the analysts’ estimates for the adjusted earnings per share of $3.11, according to the Zacks Consensus Estimate. The company had reported 4 percent decline in the adjusted revenue growth to $905.9 million in the second quarter of FY 24, beating the analysts’ estimates for revenue of $897 million. Adjusted operating profit increased 6.1% to $140.1 million. Adjusted operating margin of 15.5% was up 150 bps year over year. Adjusted EBITDA rose 5.7% to $153 million from a year ago. Adjusted EBITDA margin expanded 160 bps to 16.9% from a year ago.

Additionally, at the fiscal second-quarter end, Acuity Brands had cash and cash equivalents of $578.9 million compared with $397.9 million at the fiscal 2023-end. Long-term debt was $495.9 million, in line with the fiscal 2023-end. During the first six months of fiscal 2024, cash provided by operating activities totaled $292.6 million, down from $306.4 million in the prior-year period. Free cash flow was down 2.7% to $263.6 million in the first six months of fiscal 2024. During the first half of fiscal 2024, the company repurchased nearly 370,000 shares of its common stock for $68 million.

On the other hand, AYI has received an updated price target from Oppenheimer, with the firm raising its target to $315 from the previous $250 while maintaining an Outperform rating on the stock.