LSI Industries (LYTS) Rockets Higher On LED Growth, Smashes Estimates

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10:46:24 am on October 21, 2010

LSI Industries (LYTS) is what I’d call an off the radar LED lighting play in the same group as an Orion Energy (OESX) and Nexxus Lighting (NEXS).  These are the LED plays that don’t have the big profits and are on the cusp of growth.  After reporting earnings results this morning, you could argue that LYTS is emerging as a new leader in the LED space.  Actually, the growth really began last quarter when the company reported quarter over quarter earnings and sales growth of 500% and 27% respectively. 

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This time around the analysts didn’t expect much from LSI with a consensus estimate from three analysts of just .04/share.  The company smashed that estimate by posting .18/share which is an 80% jump over the year ago quarter.  They beat on the revenue side as well posting $79.85 million (about 20% above year ago quarter) vs the estimate of $66 million. 

Here are some comments made by CEO Robert Ready regarding their growing LED business:

“Looking forward we are optimistic about our continued growth in solid-state LED lighting. Our recently introduced Crossover(R) Generation 3 product line has been very well received and is a market leader resulting in increasing unit sales and a broader customer base. Lighting solutions geared to energy reduction are popular in all markets and we have a number of new products that will be released during the second quarter of this fiscal year that will continue to fuel the growth of our advanced fluorescent and solid-state LED products. LSI continues to lead the way in advanced energy-efficient lighting and graphics products. We believe we also made very good progress in the establishment of a distribution channel to the European and Middle East markets for our solid-state LED lighting products and have obtained nearly all required European product certifications. This is expected to lead to sales growth in new markets for LSI in the near future.

Traders loved the report this morning, sending the stock up 30% to a new 52 week high.  After spending two years in a basing pattern, it appears a long term bottom has been put in.  The stock will look mighty attractive on any pull backs or sideways digestion following this big move.

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