LCI Industries Q2 sales rise 5%, beat estimates
Overview
LCI Industries Q2 net sales rise 5% yr/yr, beating analyst expectations, per LSEG data
Adjusted net income for Q2 down 2% yr/yr, impacted by executive separation costs
Company completed Freedman Seating acquisition, adding $125 mln in annual revenue
Outlook
LCI Industries targets $5 bln organic revenue by 2027
Company aims for 85 basis points overhead improvement in 2025
LCI Industries focuses on efficiency to sustain profits at lower volumes
Company expects innovation to drive results through 2025
Result Drivers
TARIFF MITIGATION - Diversification of supply chain helped minimize tariff impact and support profitability
MARKET SHARE GAINS - Increased sales driven by market share gains and higher content fifth-wheel units
ACQUISITIONS - Sales from acquired businesses contributed significantly to revenue growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $1.11 bln | $1.07 bln (8 Analysts) |
Q2 Net Income |
| $57.64 mln |
|
Q2 Capex |
| $12.74 mln |
|
Q2 Gross Profit |
| $270.02 mln |
|
Q2 Operating income |
| $87.80 mln |
|
Q2 Pretax Profit |
| $78.12 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."
Wall Street's median 12-month price target for LCI Industries is $96.00, about 0.1% above its August 4 closing price of $95.93
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nBwT53rga
