Acuity Brands Inc (NYSE:AYI) shares surged following better-than-expected fiscal third-quarter results.
The lighting company reported earnings of US$1.80 per share on revenue of US$944mln compared with US$1.90 EPS on revenue of US$891.6mln in its previous third quarter.
Acuity reported adjusted earnings of US$2.37 compared with consensus estimates of US$2.17. The company also topped revenue estimates of US$899mln.
The Atlanta-based company provides lighting and building management solutions throughout North America, Europe and Asia. Brands include Lithonia Lighting, Holophane, Peerless and Gotham.
The company also entered into a new credit agreement with a syndicate of banks to increase its borrowing capacity to US$800mln from US$250mln.
For the year ahead, CEO Vernon J. Nagel expects to see improvement in the North American lighting market.
“Third-party forecasts and leading indicators suggest that demand in the North American lighting market, the Company’s primary market, will improve modestly in the second half of calendar 2018 following several quarters of weak demand," said Nagel in a press statement.
Shares of Acuity jumped double-digits, up more than 13% to US$132.52 in Tuesday morning trading.