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A week ago, LSI Industries Inc. (NASDAQ:LYTS) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$138m arriving 5.5% ahead of forecasts. Statutory earnings per share (EPS) were US$0.22, 10.0% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for LSI Industries
After the latest results, the three analysts covering LSI Industries are now predicting revenues of US$539.7m in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 6.4% to US$0.77 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$535.0m and earnings per share (EPS) of US$0.83 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 15% to US$22.67, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values LSI Industries at US$26.00 per share, while the most bearish prices it at US$20.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that LSI Industries' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that LSI Industries is expected to grow much faster than its industry.