LSI Industries Inc. Just Recorded A 10.0% EPS Beat: Here's What Analysts Are Forecasting Next

LSI Industries Inc. (NASDAQ:LYTS) just released its latest quarterly results and things are looking bullish. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for LSI Industries

Following the latest results, LSI Industries' three analysts are now forecasting revenues of US$539.7m in 2025. This would be a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 6.4% to US$0.77 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$535.0m and earnings per share (EPS) of US$0.83 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 15% to US$22.67, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic LSI Industries analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$20.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting LSI Industries is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting LSI Industries' growth to accelerate, with the forecast 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect LSI Industries to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on LSI Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for LSI Industries going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for LSI Industries that you should be aware of.

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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.