LSI Industries Inc (NASDAQ:LYTS) shares are trading higher after the second-quarter earnings result.
The company reported second-quarter sales growth of 36% year-on-year to $147.734 million, beating the analyst consensus estimate of $129.195 million.
The increase was driven by broad-based demand strength across its vertical markets. The company also benefitted from solid organic growth within the Display Solutions segment, along with contributions from the EMI acquisition completed in April 2024.
Gross profit rose 10.5% at $34.86 million and the margin decreased by 530 basis points to 23.6%.
The operating income for the quarter grew 8.2% to $8.45 million and the operating margin of 5.7% contracted by 150 basis points.
The Company generated adjusted EBITDA of $13.3 million or 9.0% of net sales, an increase of more than 20% versus the year-ago period.
Adjusted EPS of $0.26 beat the consensus estimate of $0.20.
The operating cash flow was $9.89 million. Free cash flow for the quarter totaled $8.8 million.
The Company declared a regular cash dividend of $0.05 per share payable on February 11, 2025, to shareholders of record on February 3, 2025.
“LSI delivered 14% organic sales growth in the fiscal second quarter, supported by strong demand across our core refueling, c-store, and grocery verticals,” stated President and CEO James A. Clark.
Looking ahead, the company said it remains well positioned to drive continued, profitable growth entering the second half of fiscal year 2025.
Price Action: LYTS shares are trading higher by 20.6% at $23.85 on the last check Thursday.
Photo via Shutterstock.
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