LSI (LYTS) Grew Sales 51%. Is Royston Masking Slower Organic Growth?
LSI Industries Inc. (NASDAQ:LYTS) reported a 51% increase in fiscal fourth-quarter net sales to $234.6 million. The company's adjusted diluted earnings per share reached $0.38, up from $0.34 in the previous year. Royston, a subsidiary of LSI, generated $66.9 million in revenue, contributing to the majority of the quarter's sales growth.
Adjusted earnings excluding acquisitions saw an 8% increase to $167.7 million. However, the overall quarter experienced a decline in adjusted EBITDA margin to 10.9%, despite overall revenue increasing 20% to $689.4 million. Despite the growth in sales, the company's net debt increased to $241.7 million, and the ratio of net debt to pro forma trailing-12-month adjusted EBITDA rose to 2.71 times.
The investment potential of LYTS is acknowledged, but other AI stocks may offer greater upside potential with less risk.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
