January 13, 2024
5 Things to Know: Week Ending January 13
Significant gains for Acuity Brands shareholders. Plus, two Rocky Mountain agents merge.
Here's a roundup of some of the week's happenings curated to help lighting people stay informed.
1. Acuity Brands share price hits highest point since 2017
Acuity Brands, Inc. (NYSE: AYI), has witnessed a significant uptick in its share price. Over the past week, the company's stock has increased by approximately $20 per share. This rise followed the announcement of Acuity Brands' financial results for the first quarter, ending November 30, 2023. Despite experiencing a 6% decline in sales, the company reported increased profits and earnings. This financial performance inspired a 10% increase in share price on Tuesday alone.
The following day marked another notable moment for Acuity Brands as its stock reached a 52-week high, peaking at $230.34 during intraday trading. This level not only represented a yearly high-water mark but also the highest point since 2017. The company’s all-time high share price occurred in August 2016, closing above $270 per share on numerous days.
As the week concluded, Acuity Brands' stock stood at $224.57. With the current financial quarter ending on February 29th, stakeholders reflect on the April 4, 2023 event, when the company's stock plummeted by 11% in a single trading day – a reaction to Q2 2023 results. As the next earnings report is anticipated in April 2024, investors remain optimistic, hoping for a repeat of the strong financial performance, contrasting starkly with the less favorable quarter a year prior, potentially leading to another surge in the stock price.
2 . Architects see fee cap increase for federal projects
The American Institute of Architects (AIA) praised the recent congressional action that increased the fee limitation for federal design and construction projects under the Department of Defense (DOD) from 6% to 10%. This change, part of the 2023 National Defense Authorization Act (NDAA), represents a significant shift from the longstanding 6% cap.
Historically, fees for federal design projects, both civilian and military, were restricted to 6% of the total project cost. This limitation, according to the AIA, did not reflect the growing complexity and requirements of modern design projects. AIA President Kimberly Dowdell remarked, “This is a step in the right direction to ensuring that architects are adequately compensated for their specialized skills and training in federal projects.”
3. Rocky Mountain Agent Merger
The two accelerating trends among lighting agencies include: 1) expanding to include an electrical supply representation, and 2) broadening their geographic territory to adjacent markets, often the next market over from their home base.
Denver-based Visual Interest, which currently represents Signify's Genlyte Solutions in Colorado, New Mexico, and El Paso, Texas, has achieved both these objectives simultaneously. As announced this week, electrical supply rep, Trifecta, is merging with Visual Interest to form VI Supply. This new entity will operate in Colorado, New Mexico, El Paso, Western Nebraska, and Southern Wyoming. The merger bolsters Visual Interest's portfolio, especially in the electrical supply sector, by adding brands like Southwire, Topaz, and others to their offerings.
4. Red Sea conflict impacting U.S. import costs 43%
In the wake of the ongoing Red Sea conflict, major players in the ocean shipping industry that handle upwards of 90% of global trade are bracing for months of cost-stoking upheaval.
As reported by Reuters, rerouting a ship around Africa adds roughly 10 days and $1 million in fuel costs for each one-way voyage between Asia and Europe.
Rates on the Shanghai-Europe route rose 8.1% to $3,103 per 20-foot container on Friday from a week earlier, while the rate for containers to the unaffected U.S. West Coast soared 43.2% to $3,974 per 40-foot containers week on week, leading ship broker Clarksons said on Friday.
5. New Circadian research
A recent study published in Lighting Research & Technology explores the potential of various lighting designs to support both visual and circadian rhythms without causing discomfort or excessive energy use.
The study, led by researchers from the Light and Health Research Center – Icahn School of Medicine at Mount Sinai, evaluated four ceiling lighting configurations and one local lighting design, all providing high levels of circadian-effective lighting.
Key findings include no significant impact on melatonin suppression, visual performance, or sleepiness across the different configurations. Interestingly, the majority of participants favored local lighting over ceiling-mounted options, despite none causing unacceptable glare or exceeding energy limits, except for one. This research provides insights to those interested in optimizing lighting for both health and efficiency.
