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

LSI Industries (NASDAQ:LYTS) posted its 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. The business had revenue of $225.85 million during the quarter, compared to analyst estimates 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 Price Performance

LYTS traded down $0.59 during trading on Friday, reaching $17.20. The stock had a trading volume of 853,786 shares, compared to its average volume of 336,770. The firm has a market capitalization of $641.73 million, a price-to-earnings ratio of 27.30 and a beta of 0.54. The company has a quick ratio of 1.22, a current ratio of 1.97 and a debt-to-equity ratio of 0.68. LSI Industries has a 1-year low of $16.83 and a 1-year high of $27.36. The stock has a 50 day moving average of $20.25 and a two-hundred day moving average of $21.99.

LSI Industries Announces Dividend

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

Wall Street Analyst Weigh In

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

Insider Transactions at LSI Industries

In other news, EVP Thomas Caneris sold 5,560 shares of LSI Industries stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $20.09, for a total transaction of $111,700.40. Following the transaction, the executive vice president directly owned 76,279 shares in the company, valued at approximately $1,532,445.11. This trade represents a 6.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO James Galeese sold 8,269 shares of LSI Industries stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $20.09, for a total value of $166,124.21. Following the transaction, the chief financial officer owned 190,740 shares in the company, valued at approximately $3,831,966.60. This trade represents a 4.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 96,345 shares of company stock valued at $1,928,267. Company 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.