Investors in LSI Industries Inc. (NASDAQ:LYTS) had a good week, as its shares rose 3.7% to close at US$14.91 following the release of its full-year results. It was a credible result overall, with revenues of US$470m and statutory earnings per share of US$0.83 both in line with analyst estimates, showing that LSI Industries is executing in line with expectations. 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.
Taking into account the latest results, the current consensus from LSI Industries' three analysts is for revenues of US$535.0m in 2025. This would reflect a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 7.0% to US$0.83 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$556.9m and earnings per share (EPS) of US$0.89 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the US$19.67 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values LSI Industries at US$21.00 per share, while the most bearish prices it at US$18.00. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.0% annually. So although LSI Industries is expected to maintain its revenue growth rate, it's definitely expected 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for LSI Industries going out to 2027, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for LSI Industries that you need to take into consideration.
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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.
