LSI Industries (NASDAQ:LYTS) Releases Earnings Results, Misses Estimates By $0.34 EPS

LSI Industries (NASDAQ:LYTS) issued its 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. The firm had revenue of $150.53 million for the quarter, compared to analyst estimates of $163.53 million. LSI Industries had a return on equity of 8.90% and a net margin of 3.91%.

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 Price Performance

NASDAQ LYTS opened at $23.45 on Tuesday. The company has a market capitalization of $860.85 million, a price-to-earnings ratio of 31.27 and a beta of 0.53. LSI Industries has a one year low of $16.00 and a one year high of $24.99. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.86 and a current ratio of 1.48. The stock has a 50-day moving average of $21.92 and a 200 day moving average of $20.67.

LSI Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 12th. Investors of record on Monday, May 4th were given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Monday, May 4th. LSI Industries’s dividend payout ratio is 26.67%.

Insider Transactions at LSI Industries

In other news, CFO James E. Galeese sold 136,578 shares of LSI Industries stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $24.29, for a total transaction of $3,317,479.62. Following the sale, the chief financial officer owned 173,288 shares in the company, valued at $4,209,165.52. This trade represents a 44.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Thomas A. Caneris sold 109,226 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $24.29, for a total value of $2,653,099.54. Following the sale, the executive vice president directly owned 64,790 shares in the company, valued at $1,573,749.10. The trade was a 62.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 256,173 shares of company stock valued at $6,220,368 over the last three months. Corporate insiders own 7.30% of the company’s stock.

Hedge Funds Weigh In On LSI Industries

Hedge funds and other institutional investors have recently modified their holdings of the business. Man Group plc boosted its position in shares of LSI Industries by 36.7% during the fourth quarter. Man Group plc now owns 12,829 shares of the construction company’s stock worth $235,000 after buying an additional 3,444 shares during the period. State of Wyoming acquired a new position in shares of LSI Industries in the fourth quarter valued at approximately $121,000. BNP Paribas Financial Markets raised its stake in shares of LSI Industries by 31.0% during the 3rd quarter. BNP Paribas Financial Markets now owns 5,341 shares of the construction company’s stock worth $126,000 after buying an additional 1,264 shares in the last quarter. Osaic Holdings Inc. lifted its position in shares of LSI Industries by 11.8% during the 2nd quarter. Osaic Holdings Inc. now owns 6,007 shares of the construction company’s stock valued at $102,000 after acquiring an additional 635 shares during the period. Finally, Tower Research Capital LLC TRC raised its position in shares of LSI Industries by 141.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,363 shares of the construction company’s stock worth $74,000 after purchasing an additional 2,555 shares during the last quarter. 73.91% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Zacks Research upgraded shares of LSI Industries from a “strong sell” rating to a “hold” rating in a research report on Monday, March 30th. Wall Street Zen downgraded LSI Industries from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. Finally, Weiss Ratings cut LSI Industries from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, May 22nd. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $28.33.

LSI Industries Company Profile

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.