LSI Industries Q2 sales and adjusted EPS beat estimates

Overview

• U.S. lighting and display solutions maker's fiscal Q2 sales beat analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company reported strong free cash flow of $23.3 mln in fiscal Q2

Outlook

• LSI anticipates continued revenue growth in Lighting and Display Solutions segments

• Company expects elevated market activity in Mexico into fiscal 2027

• LSI sees increased grocery orders reflecting normalized release of planned programs

Result Drivers

• LIGHTING SEGMENT GROWTH - Sales increased 15% due to large project shipments and national account opportunities

• DISPLAY SOLUTIONS IMPROVEMENT - Market activity in Mexico improved, and new customer acquisitions in refueling/c-store verticals contributed positively

• COST MANAGEMENT - Improved productivity, price optimization, and disciplined expense management offset raw material cost inflation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for LSI Industries Inc is $26.50, about 30% above its January 21 closing price of $20.38

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw1zjvRxa

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