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

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

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

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

LSI Industries Announces Dividend

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

Analyst Upgrades and Downgrades

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

Insider Activity at LSI Industries

In related news, EVP Thomas A. Caneris sold 3,170 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $20.28, for a total value of $64,287.60. Following the sale, the executive vice president owned 73,109 shares in the company, valued at approximately $1,482,650.52. This trade represents a 4.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO James E. Galeese sold 4,778 shares of LSI Industries stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $20.28, for a total transaction of $96,897.84. Following the completion of the sale, the chief financial officer directly owned 185,962 shares of the company’s stock, valued at approximately $3,771,309.36. This trade represents a 2.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 96,345 shares of company stock valued at $1,928,267. Insiders own 4.70% of the company’s stock.

Key Stories Impacting LSI Industries

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

LSI Industries Company Profile

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.