04:12 PM EDT, 10/02/2024 (MT Newswires) -- Acuity Brands ( AYI ) reported strong fiscal Q4 earnings that exceeded expectations, supported by solid gross margins and modest sales growth, Oppenheimer said in a note emailed Wednesday.

"[Acuity] continues to transform the shareholder value-creation proposition, we believe creating further competitive distance in terms of sourcing & productivity and overall analytics, product vitality, and channel partnerships," Oppenheimer said.

Acuity's Q4 adjusted earnings per share of $4.30 surpassed Oppenheimer's estimate of $4.15 and Wall Street's $4.27, while sales of $1.03 billion exceeded the investment firm's forecast of $1.01 billion, according to the note.

Acuity has introduced a long-term algorithm for its Acuity Brands Lighting and Lighting Controls segment, predicting mid-single-digit sales growth and an annual operating margin improvement of 50 to 100 basis points, according to the note.

Oppenheimer raised its price target on Acuity's stock to $370 from $315 and maintained its outperform rating.

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