LSI Industries Inc. (LYTS Quick QuoteLYTS - Free Report) is scheduled to report results for the second quarter of fiscal 2025 (ended Dec. 31, 2024) on Jan. 23, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last quarter, earnings and net sales topped the Zacks Consensus Estimate by 10% and 5.8%, respectively. Moreover, on a year-over-year basis, the bottom line declined 18.5% but the top line grew 12.2%.

LYTS’ earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 53.4%.

Trend in Estimate Revision of LSI Industries

The Zacks Consensus Estimate for earnings per share has remained unchanged at 20 cents over the past 60 days. The current estimate is in line with the year-ago quarter’s figure.

The consensus mark for net sales is pegged at $128.5 million, indicating 17.9% growth from the year-ago quarter.

Factors Likely to Shape LYTS’ Q2 Results

The top-line performance of LSI Industries is likely to have improved year over year on the back of increased contributions from the Display Solutions segment, driven by refueling the C-Store vertical and the acquisition of EMI Industries. Furthermore, a diverse end-market exposure and strong commercial and operational execution are added tailwinds.

Although softer trends across the Lighting segment due to lower large project activity are concerning, sales growth in the Refueling and Parking market verticals and the tailwinds mentioned above are expected to have fostered the quarter’s top line.

Meanwhile, the bottom-line performance is likely to have been subdued during the quarter due to an increase in the amortization expenses of acquired intangible assets. That said, these headwinds are likely to have been partially offset by an increase in volume and a more favorable mix. Notably, cost synergies implemented by LYTS, coupled with stabilizing selling prices and material input costs, are expected to have aided the margins.

What the Zacks Model Unveils About LYTS

Our proven model does not conclusively predict an earnings beat for LSI Industries this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.

Earnings ESP: LYTS has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combinations

Here are some companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

Watsco, Inc. (WSO Quick QuoteWSO - Free Report) currently has an Earnings ESP of +0.94% and a Zacks Rank of 2.

WSO’s earnings for the fourth quarter of 2024 are expected to increase 3.4%. The company did not report better-than-expected earnings in any of the last four quarters, the negative average surprise being 10%.

Louisiana-Pacific Corporation (LPX Quick QuoteLPX - Free Report) has an Earnings ESP of +11.79% and a Zacks Rank of 3.

LPX reported better-than-expected earnings in each of the last four quarters, the average surprise being 30.7%. The company’s earnings for the fourth quarter of 2024 are expected to increase 4.2%.

Meritage Homes (MTH Quick QuoteMTH - Free Report) currently has an Earnings ESP of +5.97% and a Zacks Rank of 3.

MTH’s earnings for the fourth quarter of 2024 are expected to decrease 8.9%. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 18.7%.