LSI (LYTS) To Report Earnings Tomorrow: Here Is What To Expect

Commercial lighting and retail display solutions provider LSI (NASDAQ:LYTS) will be reporting earnings tomorrow before the bell. Here’s what to expect.

LSI beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $108.2 million, down 7.9% year on year. Despite the topline growth decline, it was a stunning quarter for the company, with an impressive beat of analysts’ revenue and earnings 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 2.7% year on year to $127 million, a reversal from the 3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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 5.3% 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. Powell delivered year-on-year revenue growth of 49.8%, beating analysts’ expectations by 29.7%, and Verra Mobility reported revenues up 8.8%, in line with consensus estimates. Powell traded up 37.7% following the results while Verra Mobility’s stock price was unchanged.

Read our full analysis of Powell’s results here and Verra Mobility’s results here.

Growth stocks have seen elevated volatility as investors debate the Fed’s monetary policy, and while some of the electrical systems stocks have fared somewhat better, they have not been spared, with share prices down 8.3% on average over the last month. LSI is down 9.3% during the same time and is heading into earnings with an average analyst price target of $19.7 (compared to the current share price of $14.77).

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