LSI Industries Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that LSI Industries Inc. (NASDAQ:LYTS) released its quarterly result to the market. The early response was not positive, with shares down 5.9% to US$14.87 in the past week. It was not a great result overall. Although revenues beat expectations, hitting US$132m, statutory earnings missed analyst forecasts by 13%, coming in at just US$0.13 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in LSI Industries. Read for free now.

Taking into account the latest results, the current consensus from LSI Industries' three analysts is for revenues of US$596.2m in 2026. This would reflect a meaningful 8.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 25% to US$0.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$595.9m and earnings per share (EPS) of US$1.06 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

See our latest analysis for LSI Industries

The average price target fell 9.3% to US$26.00, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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$30.00 per share, while the most bearish prices it at US$22.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that LSI Industries' revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2026 being well below the historical 12% p.a. growth over the last five years. Compare this to the 128 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.9% per year. Factoring in the forecast slowdown in growth, it looks like LSI Industries is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for LSI Industries. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LSI Industries' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for LSI Industries going out to 2027, and you can see them free on our platform here..

Even so, be aware that LSI Industries is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.