In Wednesday trading, shares of Triangle Capital Corp. (TCAP, Financial) jumped after the company announced the sale of its $981.2 million investment portfolio to Benefit Street Partners. The transaction will be in cash, along with a simultaneous externalization transaction. Further, Barings will become the company's investment advisor, paying $85 million, or $1.78 per share, to shareholders.
Shares of Acuity Brands Inc. (AYI, Financial) lost ground on the heels of the company reporting its financial results for the second quarter. The company posted adjusted earnings of $1.89 per share. Revenue of $832.1 million grew 3.4% year over year. Further, the company beat revenue expectations by $32.82 million, but fell 22 cents short of earnings estimates.
The company attributed its revenue growth to a more than 6% increase in sales volume and an approximately 1% favorable impact from foreign exchange rate changes, which were offset by an approximately 3.5% unfavorable change in product prices and mix of products sold.
Moreover, the gross profit for the second quarter decreased to $334.9 million from $335.8 million in the prior-year quarter. The gross profit margin of 40.2% declined 150 basis points from last year.
Looking ahead, Chairman, President and CEO Vernon J. Nagel commented on the current weakness in the lighting industry and the company's ability to drive its financial performance.
“Third-party forecasts and leading indicators suggest that demand in the North American lighting market, the Company’s primary market, will improve later in calendar 2018," he said. "However, we continue to be cautious and believe overall market conditions could continue to be challenging for the near future based on soft order activity in certain sales channels, which suggests growth in the lighting fixture market may remain sluggish for the balance of 2018.”
Disclosure: The author holds no positions in any stocks mentioned.
