LSI Industries (NASDAQ:LYTS) Issues Earnings Results, Misses Expectations By $0.34 EPS

LSI Industries (NASDAQ:LYTS - Get Free Report) released its quarterly earnings results on Thursday, April 23rd. The construction company reported $0.06 earnings per share for the quarter, missing analysts' consensus estimates of $0.40 by ($0.34), Zacks reports. LSI Industries had a net margin of 3.91% and a return on equity of 9.95%. The firm had revenue of $150.53 million for the quarter, compared to analyst estimates of $163.53 million.

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

• The company reported a solid fiscal Q3: total sales rose 14% to $150.5M, adjusted EPS was $0.28, and adjusted EBITDA was $15.0M (10% of sales), with adjusted EBITDA excluding Royston up 26% year‑over‑year and margins improving ~130 bps.
• Display Solutions materially outperformed—segment sales +14% and adjusted operating income +64% YoY—driven by grocery (orders +20%) and stronger C‑store activity, including a >$5M program award and a backlog above prior year.
• Lighting showed near‑term softness: Q3 growth was only ~2%, the quote‑to‑order conversion cycle lengthened, and management expects Q4 lighting sales to decline mid‑single digits, which will pressure consolidated Q4 revenue growth.
• LSI completed the Royston acquisition (six‑day stub in Q3), which management says is accretive to Display margins, expands capabilities across verticals and contributes to a pro forma revenue run‑rate approaching $900M (pro forma TTM net debt/EBITDA ~ 2.7x).
• Strong cash generation continued with free cash flow of $11.8M in the quarter and management emphasized disciplined integration and operational improvements—note these are management statements and subject to execution risk.

LSI Industries Stock Up 0.6%

LYTS stock traded up $0.14 during mid-day trading on Friday, hitting $24.56. 330,813 shares of the company were exchanged, compared to its average volume of 291,735. The firm has a fifty day simple moving average of $20.32 and a 200 day simple moving average of $20.32. The company has a market capitalization of $764.55 million, a PE ratio of 32.75 and a beta of 0.54. LSI Industries has a twelve month low of $15.31 and a twelve month high of $24.75. The company has a current ratio of 2.15, a quick ratio of 1.21 and a debt-to-equity ratio of 0.11.

LSI Industries Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 12th. Shareholders of record on Monday, May 4th will be issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Monday, May 4th. LSI Industries's dividend payout ratio (DPR) is currently 26.67%.

Analysts Set New Price Targets

LYTS has been the subject of a number of analyst reports. Wall Street Zen raised shares of LSI Industries from a "hold" rating to a "buy" rating in a research report on Sunday, February 15th. HC Wainwright reaffirmed a "buy" rating and set a $30.00 target price on shares of LSI Industries in a research report on Tuesday, January 27th. Canaccord Genuity Group boosted their price target on LSI Industries from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Friday, January 23rd. Finally, Zacks Research raised LSI Industries from a "strong sell" rating to a "hold" rating in a report on Monday, March 30th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, LSI Industries has an average rating of "Moderate Buy" and a consensus price target of $28.33.

Hedge Funds Weigh In On LSI Industries

Several large investors have recently modified their holdings of LYTS. Osaic Holdings Inc. increased its holdings in LSI Industries by 11.8% in the second quarter. Osaic Holdings Inc. now owns 6,007 shares of the construction company's stock valued at $102,000 after buying an additional 635 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in LSI Industries by 22.0% during the 2nd quarter. BNP Paribas Financial Markets now owns 4,077 shares of the construction company's stock worth $69,000 after buying an additional 736 shares during the last quarter. Two Sigma Investments LP grew its position in shares of LSI Industries by 1.2% in the 3rd quarter. Two Sigma Investments LP now owns 59,774 shares of the construction company's stock worth $1,411,000 after acquiring an additional 737 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of LSI Industries by 205.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,534 shares of the construction company's stock valued at $28,000 after acquiring an additional 1,031 shares during the last quarter. Finally, MetLife Investment Management LLC increased its holdings in shares of LSI Industries by 7.8% in the 4th quarter. MetLife Investment Management LLC now owns 15,391 shares of the construction company's stock valued at $282,000 after acquiring an additional 1,109 shares during the last quarter. Institutional investors own 73.91% of the company's stock.

About LSI Industries

LSI Industries, Inc NASDAQ: LYTS is a diversified manufacturer and distributor of lighting, graphics and building technology products. Headquartered in Cincinnati, Ohio, the company develops energy-efficient LED lighting systems, branded and digital graphic displays, and integrated building technology solutions. Serving customers in the retail, quick-service and convenience store, industrial, hospitality and transportation markets, LSI combines design, engineering and manufacturing capabilities to address both aesthetic and functional needs.

In its lighting segment, LSI offers interior and exterior LED fixtures, canopy lights, high-bay and low-bay systems, and specialized horticultural grow lights.