What happened
LSI Industries (LYTS 0.53%) stock is seeing huge gains following the company's recent fourth-quarter report. The commercial lighting and display specialist's share price was up 17.9% as of 11 a.m. ET on Thursday, according to data from S&P Global Market Intelligence.
Prior to the market opening today, LSI released results for the fourth quarter of its most recently completed fiscal year, which ended June 30. The company reported non-GAAP (adjusted) earnings per share of $0.30 on revenue of $123.5 million, handily topping the average analyst estimates' call for per-share earnings of $0.19 on revenue of roughly $118.6 million.
NASDAQ: LYTS
Key Data Points
So what
All in all, LSI Industries delivered a strong quarterly report -- with a 5% year-over-year sales increase for its lighting segment powering better-than-expected results. The company's adjusted net income rose 46% year over year to reach $8.8 million, and its free cash flow surged 94% compared to the prior-year period to hit $15.6 million. LSI also continued to make progress improving its balance sheet, cutting debt by 50% to $33.4 million at the end of its last fiscal year.
Now what
Following its valuation spike today, LSI industries now trades at roughly 15 times this year's expected earnings.
LYTS PE Ratio (Forward) data by YCharts
While LSI didn't break out specific guidance with its Q4 report, the company did provide some updates on what shareholders can expect as the business moves through the current fiscal year. Management believes it's in good position to win an expanded contract from a customer that is currently expanding its electric vehicle battery manufacturing complex. If LSI wins the contract, it expects that the order would be larger than the order it had from the customer last year and that shipment activity would begin in the second quarter and carry into the third quarter of its current fiscal year.
