LSI (LYTS) Gears Up to Report Q1 Earnings: What's in Store?
LSI Industries Inc. LYTS is scheduled to report the first quarter of fiscal 2024 results on Nov 2, before market open.
In the last reported quarter, this advanced lighting, graphics and display solutions provider’s adjusted earnings and revenues beat the Zacks Consensus Estimate by 64.7% and 3.5%, respectively. LSI’s fourth-quarter fiscal 2023 adjusted earnings grew 33.3% but net sales declined 3% year over year.
Notably, LSI topped the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 61.2%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) has remained unchanged at 24 cents over the past 60 days. The estimated figure indicates 9.1% growth from the year-ago EPS of 22 cents. The consensus mark for revenues is $121.8 million, suggesting a 4.2% year-over-year decline.
LSI Industries Inc. Price and EPS Surprise
LSI Industries Inc. price-eps-surprise | LSI Industries Inc. Quote
Factors to Note
Slowing in large projects, lengthening quote-to-order conversion periods, as well as delaying order release and unfavorable comparison for large digital menu board orders, are expected to have hurt Display Solutions segment sales (which accounted for 42.2% of fiscal fourth-quarter sales) in the quarter. On the other hand, Lighting segment sales (which accounted for 57.8% of net sales in the fiscal fourth quarter) are likely to have benefited from increased order activity in multiple verticals across both indoor and outdoor applications.
Nonetheless, LSI is anticipated to have benefited in its quarterly performance due to favorable demand conditions in its vertical markets, the swift adoption of recently introduced products and services, consistent price discipline, a sales mix with higher value, and effective operational execution.
From the margin perspective, the mix of higher-value applications, improved program pricing, strong operational execution and effective margin management are expected to have boosted profits.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for LSI for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here, as you will see below.
Earnings ESP: LSI has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: LSI currently carries a Zacks Rank #3.
Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector that have the right combination of elements to post an earnings beat on their respective quarters to be reported.
KBR, Inc. KBR has an Earnings ESP of +6.36% and carries a Zacks Rank #2.
KBR’s earnings topped the consensus mark in all the last four quarters, with the average being 10.8%. Earnings for the to-be-reported quarter are expected to grow 12.3% year over year.
Dycom Industries DY has an Earnings ESP of +1.24% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DY’s earnings topped the consensus mark in all the last four quarters, the average being 147.4%. Earnings for the to-be-reported quarter are expected to increase 4.7% year over year.
Construction Partners, Inc. ROAD has an Earnings ESP of +2.91% and sports a Zacks Rank #1.
ROAD’s earnings topped the consensus mark in three of the last four quarters, with the average being 10.6%. Earnings for the to-be-reported quarter are expected to rise 108% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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KBR, Inc. (KBR) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
LSI Industries Inc. (LYTS) : Free Stock Analysis Report
Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
