12:50 PM EDT, 06/27/2024 (MT Newswires) -- Acuity Brands' ( AYI ) fiscal third-quarter revenue fell more than the market projected amid weakness in its core lighting business while earnings outperformed expectations, leading the building management solution provider to affirm its full-year guidance.

Revenue fell to $968.1 million for the three months ended May 31 from $1 billion the prior year and missed the $996.5 million average estimate among six analysts surveyed by Capital IQ. A sales decline of 4.5% to $898.5 million in Acuity's lighting and lighting controls division was partially offset by a 15% increase to $75.7 million in the intelligence spaces group.

Adjusted earnings per share rose to $4.15 from $3.75 year over year and surpassed seven analysts' $4.08 view.

In its lighting business, adjusted operating profit advanced by $2 million to $162 million as adjusted operating profit margin expanded 100 basis points to 18%, Chief Executive Neil Ashe told analysts on a conference call, according to a Capital IQ transcript.

"In our lighting and lighting controls business, we continue to expand profitability while we focus on returning the business to growth," he said "In our intelligent spaces business, the growth rate and overall performance remains impressive."

The company affirmed its fiscal 2024 outlook for total sales in the $3.7 billion to $4 billion range and adjusted EPS between $14.75 and $15.50. Eight analysts surveyed by Capital IQ are modeling revenue of $3.89 billion and normalized EPS of $15.41 in the ongoing year.

The lighting business's order rate continued to grow on an annual basis in the third quarter and the company built backlog as orders exceeded shipments, Ashe told analysts. In the fourth quarter, the order rate trend "is likely to continue," he said.

Intelligence spaces, meanwhile, is "becoming a more important part of our company," according to Ashe. "Our performance is and continues to be strong, and we will continue to allocate capital to expand our addressable market," he said.

Price: 242.06, Change: +2.29, Percent Change: +0.95