Shares of Acuity (AYI), a leading industrial technology company specializing in lighting and building management solutions, plunged 6.63% in pre-market trading on Friday. The sharp decline comes in the wake of the company's second-quarter fiscal 2025 earnings report and growing concerns over the impact of new tariffs.

Acuity reported second-quarter fiscal 2025 revenues of $1,006.30 million, falling short of the Zacks Consensus Estimate of $1,022.63 million. This revenue miss, coupled with uncertainty surrounding recently announced tariffs, appears to have spooked investors. During the earnings call, CEO Neil Ashe acknowledged the potential impact of tariffs, stating, "We approach tariffs as the equivalent of a supply shock, and our financial priorities are, first, to manage the dollar impact, and second, to manage the margin impact."

Adding to the pressure on Acuity's stock, Morgan Stanley analyst Christopher Snyder lowered the firm's price target on Acuity Brands to $335 from $370, though maintaining an Overweight rating. This adjustment reflects growing concerns about the company's near-term outlook in light of economic uncertainties and the potential impact of new tariffs on Acuity's supply chain and pricing strategies.

Despite the challenges, Acuity management remains confident in the company's strategic positioning. Ashe emphasized the strength of Acuity's diversified global supply chain and the company's ability to adapt to changing market conditions. However, investors appear to be taking a cautious stance as they assess the full implications of the revenue miss and potential tariff-related headwinds on Acuity's future performance.