LSI Industries (LYTS) Misses, Remains Cautiously Optimistic For Fiscal 2012

LSI Industries (LYTS) reported after the bell tonight, missing analyst estimates.  The company reported an EPS of .06/share on revenues of $75 million which compares with the analyst estimate of .11/share on revenues of  $76 million.  CEO Robert J. Ready blamed the earnings miss on less federal tax credits and an increase in local income taxes.  Despite the miss, the company still posted nice quarter over quarter EPS and revenue growth of 50% and 16% respectively. 

"We finished fiscal 2011 with a highly liquid and strong balance sheet. As always, we are strong believers in maintaining a sound and conservatively capitalized financial position. This has always served LSI Industries well as we have financed our growth, made substantial capital acquisitions, acquired businesses, and paid regular cash dividends.

"Speaking of cash dividends, I am pleased to report that the Board of Directors has supported management’s recommendation to increase the annual indicated cash dividend rate from $0.20 per share to $0.24 per share, an increase of 20%. LSI Industries believes dividends are important to its shareholders and has paid regular cash dividends since 1989.

"In conclusion, fiscal 2011 was a much improved year and we are very well-positioned to move forward. We are cautiously optimistic about fiscal 2012, but, of course, remain concerned about the state of the global and U.S. economies. LSI Industries has the initiatives in place to grow the business and I will be talking more about this in the Annual Report to Shareholders."

Technically, shares of LYTS remain in a basing pattern and considering the weakness of the overall market as well as this earnings miss, I don’t see the stock emerging from the basing pattern anytime soon.  That being said, this is a promising LED/efficient lighting play that is profitable and should be on the watchlist when the overall market turns around.

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