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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Spotting Winners: Acuity Brands (NYSE:AYI) And Electrical Systems Stocks In Q1

AYI Cover Image

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the electrical systems stocks, including Acuity Brands (NYSE: AYI) and its peers.

Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.

The 12 electrical systems stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 2.9% below.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

Acuity Brands (NYSE: AYI)

One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.

Acuity Brands reported revenues of $1.01 billion, up 11.1% year on year. This print fell short of analysts’ expectations by 2.2%. Overall, it was a softer quarter for the company with a miss of analysts’ organic revenue estimates and a slight miss of analysts’ EBITDA estimates.

"We delivered steady performance in the second quarter of fiscal 2025," stated Neil Ashe, Chairman, President and Chief Executive Officer of

Acuity Brands Total Revenue

Acuity Brands delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 2.5% since reporting and currently trades at $260.14.

Read our full report on Acuity Brands here, it’s free.

Best Q1: Kimball Electronics (NASDAQ: KE)

Founded in 1961, Kimball Electronics (NYSE: KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.

Kimball Electronics reported revenues of $374.6 million, down 11.9% year on year, outperforming analysts’ expectations by 10.8%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Kimball Electronics Total Revenue

Kimball Electronics delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.9% since reporting. It currently trades at $17.22.

Is now the time to buy Kimball Electronics? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Whirlpool (NYSE: WHR)

Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.

Whirlpool reported revenues of $3.62 billion, down 19.4% year on year, falling short of analysts’ expectations by 1%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.

Whirlpool delivered the slowest revenue growth in the group. The stock is flat since the results and currently trades at $77.

Read our full analysis of Whirlpool’s results here.

Allegion (NYSE: ALLE)

Allegion plc (NYSE: ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.

Allegion reported revenues of $941.9 million, up 5.4% year on year. This result surpassed analysts’ expectations by 2%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates.

The stock is up 11.7% since reporting and currently trades at $141.31.

Read our full, actionable report on Allegion here, it’s free.

Atkore (NYSE: ATKR)

Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.

Atkore reported revenues of $701.7 million, down 11.5% year on year. This print topped analysts’ expectations by 0.6%. It was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates.

The stock is down 2.3% since reporting and currently trades at $65.33.

Read our full, actionable report on Atkore here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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