Acuity Brands, Inc. (NYSE:AYI) shares were trading more than 10% lower Tuesday morning, despite the company’s reported Q2 results coming in better than expected.

Q2 EPS was $2.57, better than the Street estimate of $2.37. Quarterly revenue rose 17% year-over-year to $909.1 million, beating the Street estimate of $884.62 million.

The gross margin of 41.7% was up 170 bps year-over-year, reflecting significantly higher materials and freight costs partly offset by price, volume, and ongoing product and productivity improvements.