What happened Shares of Acuity Brands (NYSE: AYI) had been rising over the past two weeks, but today's earnings report from the company left investors wanting more, and the stock sold off to the tune of 10% after fiscal fourth-quarter earnings were released. So what After more than a 15% gain leading up to its earnings release over the past two weeks, shares gave back more than 10% today when the company said sales for the quarter ending Aug. 31, 2020, dropped 5% versus the prior-year period. But it may have been the outlook that also had investors somewhat spooked. Image source: Getty Images. Though the company's fiscal year was impacted by the pandemic, Acuity reported an increase in free cash flow as well as cash and equivalents for the year. Now what During the quarter, the company also spent $69 million to repurchase shares, and maintained its dividend. But after expectations drove up shares leading up to the earnings release, investors took some profits when the company remained uncertain in its outlook. The provider of lighting and building management solutions doesn't see a sharp upturn coming as businesses still struggle to regain footing after pandemic-related restrictions. The company said in its earnings release that "we expect weakness in nonresidential building activity based on current construction indicators." But today's drop can likely be attributed more to the recent share price run-up. It's a positive sign that Acuity could increase its cash position as it generated more free cash flow this quarter. It said it believes it will be able to leverage its portfolio in lighting and smart building solutions going into its next fiscal year. 10 stocks we like better than Acuity BrandsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Acuity Brands wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source