Commercial lighting and retail display solutions provider LSI (NASDAQ: LYTS) will be announcing earnings results this Thursday before market hours. Here’s what investors should know.
LSI beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $132.5 million, up 22.5% year on year. It was a softer quarter for the company, with EPS in line with analysts’ estimates and a miss of analysts’ EBITDA estimates.
Is LSI a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting LSI’s revenue to grow 7.7% year on year to $138.9 million, improving from the 4.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LSI has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4% on average.
Looking at LSI’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Vertiv delivered year-on-year revenue growth of 35.1%, beating analysts’ expectations by 12%, and Kimball Electronics reported a revenue decline of 11.6%, topping estimates by 14.2%. Vertiv traded up 2% following the results while Kimball Electronics was also up 17.7%.
Read our full analysis of Vertiv’s results here and Kimball Electronics’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 4.6% on average over the last month. LSI is up 10.7% during the same time and is heading into earnings with an average analyst price target of $26 (compared to the current share price of $19.35).
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