CFRA analyst said Tuesday they are sticking with their hold rating on Acuity Brands Inc. stock after the company reported earnings for its fiscal third quarter. "We see continued pressure on gross margins, which we expect to decline 250 basis points to 41.0% in FY 18," analyst Elizabeth Vermillion wrote in a note. "We anticipate 1.0% to 1.5% revenue growth in FY 18." The lighting company closed the regular session up 12.8%, after earnings blew past estimates. The company said it had net income of $73.0 million, or $1.80 a share, in the quarter to May 31, down from income of $82.2 million, or $1.90 a share, in the year-earlier period. Adjusted per-share earnings came to $2.37, well ahead of the FactSet consensus of $2.17. Sales rose to $944.0 million from $891.6 million, also ahead of the FactSet consensus of $899 million. Sales were driven by shipments of the company's Atrius-based luminaires, as well as higher shipments of products for infrastructure and utility projects. Those items were partially offset by lower net sales for larger commercial projects, Chief Executive Vernon Nagel said in a statement. The company is expecting demand in the North American lighting market to improve in the second half, although pricing is expected to remain challenging in some parts of the market. Shares have fallen 25% in 2018, while the S&P 500 has gained 1.5%.