LSI Industries, Inc. (LYTS:BUY) Q3:14 revenues and EPS below our expectations largely due to sales decline in Graphics segment.
April 29, 2014
By Senior Analyst
- LYTS reported revenues of $69.0 million compared to Q3:13 revenues of $66.2 million, and below our estimate of $72.1 million.
- Graphics segment revenues failed to materialize during the quarter due to the absence of orders from key retail clients.
- Gross margin declined to 19.9% compared to 21.0% in Q3:13, and was below our estimate of 22.1%.
- EPS was ($0.04) in Q3:14 compared to EPS of ($0.01) in Q3:13 and was below our estimate of $0.04.
- We are lowering our FY:14 EPS estimate to $0.08 from $0.24 and lowering our FY:15 estimate to $0.36 from $0.42.
- We maintain our BUY rating and our 12-month target price is maintained at $11.00. The current dividend yield is 3.0%.
- LYTS may experience volatility in its COGS from increased commodity and component costs, particularly steel, aluminum, light bulbs, fluorescent tubes, plastic, lenses, inks, and LEDs.
- LYTS has traditionally focused on the gas station and convenience store markets for key customers which combined represents over 30% of total sales during Q3:14.
Tags: Latest Updates, Research News