$AYI – Acuity Brands – last closed at 223.84 – Bullish (Growth)

Acuity Brands is a lighting solutions company. It is believed that the company has been successfully transforming from discreet and conventional lighting systems to energy efficient, LED-Based solutions.

Acuity Brands is scheduled to report its first-quarter fiscal 2016 earnings results today before the markets open.

For the quarter that ended in November, the average analysts estimate calls for earnings of $1.59 a share on revenue of $740.78 million, translating to growth of 20.45% and 14%, respectively. For the full-year, ending August 2016, earnings are projected to be $6.83 a share, marking an increase of 26.7%, while full-year revenue of $3.12 billion would mean growth of 15.3%.

While some analysts say that at the current projections, its forward P/E would come down to 28, which is still pretty bad, there are those who think that these projections have not taken into consideration the potential growth of Acuity Brands from its acquisition of Quebec-Based Distech Controls. Acuity can now increase its market share in areas like building automation and energy management technology — two of Distech’s specialties. These factors help explain why many analysts including Jonathan Dorsheimer from Canaccord Genuity reiterated a Strong Buy rating on Acuity Brands.

$QRVO – Qorvo, Inc –  Last closed at 45.64 – Bullish (Undervalued)

Qorvo, Inc, is a provider of core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications.

After yesterday’s close, Qorvo announced that it has lowered its 3rd quarter revenue expectations to approximately $620 million from the prior $720 million. Due to this news, the investor sentiments are negative. Many chartists say that since the prices are below the declining 50-day and the 200-day moving averages, the trend is downward for now and the prices are likely to lower from $45 to somewhere in the $40’s.

However, Qorvo is said to have strong fundamentals and Analysts on Wall Street have provided a consensus recommendation Buy for Qorvo, Inc. According to analysts,

  • QRVO’s debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average
  • Net operating cash flow has significantly increased by 187.55% to $168.80 million when compared to the same quarter last year.
  • QRVO’s revenue growth greatly exceeded the industry average of 9.6%.

 

And by the way, if you were wondering about what happened with our Chinese market coverage … With the Chinese government putting an end to the circuit breaker mechanism, the stock markets sentiments around the globe will be no more affected. Though this may not be a final solution to the issues at China, it definitely reinstated the negative market sentiments to a more normal outlook.

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