Acuity Q2 Earnings Preview: Wall Street Eyes Demand Trends, But Retail Traders Are Nervous

Acuity (AYI) stock was down marginally in premarket trading on Thursday ahead of the lighting and building management firm’s quarterly earnings later in the day.

Wall Street expects the company to report quarterly earnings per share of $3.7 on revenue of $1.03 billion. Acuity has topped market expectations for three prior quarters.

According to The Fly, Wells Fargo cut Acuity's price target to $290 from $336 last week.

The brokerage noted that there would likely be higher-than-normal attention on the Atlanta-based firm’s earnings for insights on demand trends and stock reactions.

The analyst noted that conversations around risk are more relevant in the second half of the year, and it may be too early for forecast revisions.

Earlier in March, Baird cut the price target for Acuity to $310 from $340 after noting that its fiscal second-quarter lighting checks saw volumes slightly moderate, but pricing showed an acceleration.

The company, which switched its name from Acuity Brands to Acuity in March, had missed first-quarter revenue estimates.

Retail sentiment on Stocktwits was down in the ‘extremely bearish’ (10/100) territory from ‘neutral’(51/100) a day ago, while retail chatter was ‘extremely high.’

One retail trader speculated that the stock could fall below $220.

Acuity shares have gained 1.5% year-to-date (YTD).

The firm also completed the acquisition of QSC effective Jan. 1, 2025. The transaction has helped expand Acuity's Intelligent Spaces into cloud-manageable audio, video, and control.

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