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

LSI Industries (NASDAQ:LYTS) released its quarterly earnings data on Thursday. The construction company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.12), Zacks reports. The company had revenue of $225.85 million during the quarter, compared to the consensus estimate 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 Down 3.3%

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

LSI Industries Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Investors of record on Monday, November 16th will be given a $0.05 dividend. 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 dividend payout ratio (DPR) is presently 29.85%.

Insider Buying and Selling

In other news, CFO James E. Galeese sold 4,778 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $20.28, for a total value of $96,897.84. Following the transaction, the chief financial officer owned 185,962 shares in the company, valued at $3,771,309.36. This trade represents a 2.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO James Clark sold 13,907 shares of LSI Industries 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 $282,033.96. Following the transaction, the chief executive officer directly owned 595,734 shares in the company, valued at approximately $12,081,485.52. The trade was a 2.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 96,345 shares of company stock valued at $1,928,267. Company insiders own 4.70% of the company’s stock.

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

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Oppenheimer cut their target price 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 target on shares of LSI Industries in a research note on Friday, August 21st. Wall Street Zen downgraded shares of LSI Industries from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings lowered shares of LSI Industries from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, October 30th. Finally, HC Wainwright reiterated a “buy” rating and set a $30.00 price objective on shares of LSI Industries in a report on Friday, October 2nd. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, LSI Industries currently has an average rating of “Moderate Buy” and a consensus target price of $29.00.

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.