LSI Industries (NASDAQ:LYTS) Announces Quarterly Earnings Results, Misses Estimates By $0.12 EPS

LSI Industries (NASDAQ:LYTS) posted its quarterly earnings results on Thursday. The construction company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.12), Zacks reports. LSI Industries had a net margin of 2.96% and a return on equity of 7.00%. The business had revenue of $225.85 million during the quarter, compared to analysts’ expectations of $225.00 million.

Here are the key takeaways from LSI Industries’ conference call:

• First-quarter revenue rose 44% to $226 million, largely reflecting the Royston acquisition, while adjusted EBITDA increased 41% to $22.2 million. LSI generated $13.8 million in free cash flow and reduced net debt by $14 million.
• Royston’s sales grew 8% sequentially and its adjusted EBITDA margin improved by 100 basis points; LSI also cited more than $1 million in procurement savings underway and expects over $1 million in annual savings from consolidating its Collingwood facility.
• Convenience-store and grocery demand remained supportive, with orders up 12% in grocery and sales up about 5% in refueling and convenience stores. LSI highlighted renovation programs involving 2,500 refueling sites and 3,000 QSR stores, though the latter is expected to begin late in fiscal Q3.
• Lighting sales declined 6% amid soft commercial and industrial demand, while QSR weakness weighed on Display Solutions. Management also noted customer project delays and pushouts, citing budget pressure, site delays and holiday-season scheduling.
• LSI said it expects to lower net leverage from 2.6 times to 2.0 times or less within 12–18 months. Management cautioned that inflation, weak markets and seasonal slowdowns may affect near-term results, while pointing to an updated multi-year plan expected in December.

LSI Industries Stock Down 3.3%

Shares of LSI Industries stock traded down $0.59 during trading on Friday, reaching $17.20. The company had a trading volume of 853,786 shares, compared to its average volume of 336,770. The company has a market cap of $641.73 million, a price-to-earnings ratio of 27.30 and a beta of 0.54. The firm’s fifty day moving average is $20.25 and its 200-day moving average is $21.99. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.22 and a current ratio of 1.97. LSI Industries has a fifty-two week low of $16.83 and a fifty-two week high of $27.36.

LSI Industries Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Monday, November 16th will be paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Monday, November 16th. LSI Industries’s dividend payout ratio is 29.85%.

Wall Street Analysts Forecast Growth

LYTS has been the topic of a number of research reports. HC Wainwright reissued a “buy” rating and issued a $30.00 target price on shares of LSI Industries in a research note on Friday, October 2nd. Oppenheimer lowered their price target on LSI Industries from $30.00 to $29.00 and set an “outperform” rating for the company in a report on Friday, August 21st. Morgan Stanley set a $30.00 price objective on LSI Industries in a research report on Friday, August 21st. Weiss Ratings cut LSI Industries from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, October 30th. Finally, Wall Street Zen downgraded LSI Industries from a “buy” rating to a “hold” rating in a research report on Saturday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, LSI Industries has a consensus rating of “Moderate Buy” and an average price target of $29.00.

Key LSI Industries News

Here are the key news stories impacting LSI Industries this week:

• Positive Sentiment: Revenue was about $225.9 million, just above the roughly $225.0 million analyst estimate. A separate earnings flash put adjusted EPS at $0.31, matching FactSet’s estimate. Revenue and adjusted EPS results
• Positive Sentiment: LSI declared a quarterly dividend of $0.05 per share, equivalent to $0.20 annually and a stated yield of about 1.1%. Dividend announcement
• Negative Sentiment: Reported EPS was $0.19, below analyst estimates cited at $0.21 to $0.31, and down from $0.23 a year earlier. The earnings shortfall may outweigh the modest revenue beat for investors. Quarterly earnings report

Insider Transactions at LSI Industries

In other LSI Industries news, CEO James Clark sold 23,706 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $20.09, for a total transaction of $476,253.54. Following the transaction, the chief executive officer owned 609,641 shares of the company’s stock, valued at $12,247,687.69. This trade represents a 3.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Ernest W. Marshall, Jr. bought 2,000 shares of LSI Industries stock in a transaction on Monday, August 24th. The shares were purchased at an average cost of $19.73 per share, for a total transaction of $39,460.00. Following the acquisition, the director owned 28,643 shares in the company, valued at $565,126.39. The trade was a 7.51% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold a total of 96,345 shares of company stock valued at $1,928,267 over the last ninety days. 4.70% of the stock is currently owned by company insiders.

About LSI Industries

LSI Industries Inc (NASDAQ: LYTS) designs and manufactures commercial lighting and display solutions for businesses and organizations. Its offerings include indoor and outdoor LED lighting, lighting controls, digital signage, visual display systems, and related graphics and branding products.

The company serves a range of markets, including petroleum and convenience stores, quick-service restaurants, automotive dealerships, grocery and retail locations, sports facilities, and other commercial and industrial environments.