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

LSI Industries (NASDAQ:LYTS) issued its earnings results on Thursday. The construction company reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 company had revenue of $225.85 million during the quarter, compared to analyst estimates 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 Performance

LYTS traded down $0.59 during trading on Friday, reaching $17.20. 853,786 shares of the company were exchanged, compared to its average volume of 336,770. LSI Industries has a 52 week low of $16.83 and a 52 week high of $27.36. The company has a current ratio of 1.97, a quick ratio of 1.22 and a debt-to-equity ratio of 0.68. The firm has a 50 day moving average of $20.25 and a 200 day moving average of $21.99. The stock has a market cap of $641.73 million, a P/E ratio of 27.30 and a beta of 0.54.

LSI Industries Announces Dividend

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

More 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

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

In other LSI Industries news, CEO James Clark sold 13,907 shares of the firm’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $20.28, for a total value of $282,033.96. Following the sale, the chief executive officer directly owned 595,734 shares in the company, valued at approximately $12,081,485.52. This trade represents a 2.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Thomas Caneris sold 3,170 shares of the business’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $20.28, for a total transaction of $64,287.60. Following the transaction, the executive vice president directly owned 73,109 shares of the company’s stock, valued at approximately $1,482,650.52. This trade represents a 4.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 96,345 shares of company stock valued at $1,928,267. 4.70% of the stock is owned by corporate 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.