Latest news with #LASR
Yahoo
11 hours ago
- Business
- Yahoo
LASR Q1 Earnings Call: Defense Growth Drives Results Amid Tariff Uncertainty
Laser company nLIGHT (NASDAQ:LASR) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 16% year on year to $51.67 million. On top of that, next quarter's revenue guidance ($56 million at the midpoint) was surprisingly good and 11.7% above what analysts were expecting. Its non-GAAP loss of $0.04 per share was 78.7% above analysts' consensus estimates. Is now the time to buy LASR? Find out in our full research report (it's free). Revenue: $51.67 million vs analyst estimates of $47.34 million (16% year-on-year growth, 9.1% beat) Adjusted EPS: -$0.04 vs analyst estimates of -$0.19 (78.7% beat) Adjusted EBITDA: $116,000 vs analyst estimates of -$5.14 million (0.2% margin, significant beat) Revenue Guidance for Q2 CY2025 is $56 million at the midpoint, above analyst estimates of $50.15 million EBITDA guidance for the full year is -$1.5 million at the midpoint, above analyst estimates of -$11.98 million Operating Margin: -18.6%, up from -33.1% in the same quarter last year Market Capitalization: $871.6 million nLIGHT's first quarter results were shaped by continued momentum in the aerospace and defense segment, which management said accounted for over 60% of total sales, up sharply from the prior year. CEO Scott Keeney highlighted that growth was 'primarily driven by another quarter of record defense revenue,' with particular strength in directed energy laser programs. The ongoing HEL-TD program, a Department of Defense initiative for a one-megawatt high-energy laser, was a significant contributor to this performance. Keeney also pointed to stabilization in microfabrication operations as a factor supporting modest sequential improvement in commercial sales, though underlying demand in these markets remains challenged. Management emphasized the benefits of nLIGHT's vertical integration, which enables efficient production and delivery of high-power laser systems for defense customers. Looking ahead, nLIGHT's positive revenue outlook is anchored by management's expectation for continued expansion in aerospace and defense. Keeney stated, 'The solid start to the year combined with our growing pipeline of both directed energy programs and laser sensing opportunities gives me increased confidence that we can grow our revenue in aerospace and defense by at least 25% in 2025.' CFO Joe Corso outlined that further sequential growth is anticipated in the second quarter, while commercial segments are expected to remain weak. Management acknowledged uncertainty surrounding tariffs, especially regarding input costs in the commercial business, but does not forecast a significant negative impact to defense margins in the near term. The company's ability to shift production between U.S. and Thai facilities was cited as a mitigating factor. Management attributed first quarter results to a surge in defense product sales, progress on major U.S. and international programs, and operational flexibility in response to global trade developments. Defense sales acceleration: The defense business, particularly directed energy lasers for military applications, drove revenue growth, with management noting more than 50% year-over-year expansion in defense product sales. This was largely fueled by shipments for the HEL-TD high-energy laser program, which remains on track for completion in 2026. Pipeline expansion in laser sensing: The company reported that laser sensing products—used in missile guidance, range finding, and countermeasures—continue to gain traction. nLIGHT has bid on multiple new programs, increasing both the number and size of opportunities in this segment. U.S. and international program momentum: Management highlighted ongoing work supporting the U.S. Department of Defense, including the Golden Dome executive order and the Army's DEM SHORAD initiative. Internationally, nLIGHT continues to supply technology for Israel's Iron Beam system and is building a pipeline with foreign allies. Commercial market stabilization: While industrial and microfabrication markets remain soft, the company cited stabilization at its Thai contract manufacturer as a driver for sequential improvement in commercial sales. Management does not expect a near-term recovery in these markets. Tariff mitigation strategies: Management addressed heightened tariff risks, especially for commercial lasers with input costs from China. The company has shifted production away from Shanghai to the U.S. and Thailand, aiming to reduce direct tariff exposure. While short-term defense margins may fluctuate, management does not anticipate material long-term impact from tariffs on defense demand or profitability. nLIGHT's outlook is shaped by ongoing strength in defense programs, margin sensitivity to tariffs, and persistent softness in non-defense markets. Defense pipeline and program execution: Management expects continued sequential growth from defense contracts, citing high visibility on funded programs such as HEL-TD and DEM SHORAD. The pipeline of new opportunities, including classified and international projects, is expected to drive at least 25% revenue growth in aerospace and defense for the year. Tariff-related margin risk: While management believes tariff exposure is limited for defense products, they acknowledged potential headwinds for commercial gross margins if high tariffs on Chinese inputs persist or escalate. The company's ability to shift manufacturing to Thailand and the U.S. is expected to reduce, but not eliminate, risk. Commercial segment headwinds: Weak demand in industrial and microfabrication markets is expected to continue throughout the year. Management does not anticipate a near-term recovery and sees incremental risk from tariffs potentially affecting customer demand and material costs. In the coming quarters, the StockStory team will be monitoring (1) execution against major defense programs and the pace of new contract wins, (2) gross margin trends as the company navigates shifting tariff policies, and (3) any evidence of stabilization or renewed growth in commercial and microfabrication markets. Progress on international defense contracts and the impact of manufacturing shifts will also be critical markers for nLIGHT's performance. nLIGHT currently trades at a forward price-to-sales ratio of 3.8×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
28-05-2025
- Business
- Yahoo
Are You Looking for a Top Momentum Pick? Why nLight (LASR) is a Great Choice
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at nLight (LASR), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. NLight currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Let's discuss some of the components of the Momentum Style Score for LASR that show why this laser maker shows promise as a solid momentum pick. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For LASR, shares are up 14.36% over the past week while the Zacks Electronics - Semiconductors industry is down 4.62% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 96.95% compares favorably with the industry's 11.8% performance as well. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of nLight have risen 86.06%, and are up 18.08% in the last year. In comparison, the S&P 500 has only moved 1.35% and 13.07%, respectively. Investors should also pay attention to LASR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. LASR is currently averaging 637,921 shares for the last 20 days. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with LASR. Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost LASR's consensus estimate, increasing from -$0.50 to -$0.30 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been 1 downward revision in the same time period. Given these factors, it shouldn't be surprising that LASR is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep nLight on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report nLight (LASR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
nLIGHT (NASDAQ:LASR) Surprises With Strong Q1, Stock Jumps 16.3%
Laser company nLIGHT (NASDAQ:LASR) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 16% year on year to $51.67 million. On top of that, next quarter's revenue guidance ($56 million at the midpoint) was surprisingly good and 11.7% above what analysts were expecting. Its non-GAAP loss of $0.04 per share was 78.7% above analysts' consensus estimates. Is now the time to buy nLIGHT? Find out in our full research report. Revenue: $51.67 million vs analyst estimates of $47.34 million (16% year-on-year growth, 9.1% beat) Adjusted EPS: -$0.04 vs analyst estimates of -$0.19 (78.7% beat) Adjusted EBITDA: $116,000 vs analyst estimates of -$5.14 million (0.2% margin, significant beat) Revenue Guidance for Q2 CY2025 is $56 million at the midpoint, above analyst estimates of $50.15 million EBITDA guidance for the full year is -$1.5 million at the midpoint, above analyst estimates of -$11.98 million Operating Margin: -18.6%, up from -33.1% in the same quarter last year Free Cash Flow was -$2.30 million, down from $9.82 million in the same quarter last year Market Capitalization: $425.7 million Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, nLIGHT's 2.9% annualized revenue growth over the last five years was sluggish. This fell short of our benchmarks and is a rough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. nLIGHT's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 5.8% annually. nLIGHT isn't alone in its struggles as the Electronic Components industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. We can better understand the company's revenue dynamics by analyzing its most important segments, Laser Products and Advanced Developments, which are 69.1% and 30.9% of revenue. Over the last two years, nLIGHT's Laser Products revenue (lasers, amplifiers, and directed energy products) averaged 10.4% year-on-year declines. On the other hand, its Advanced Developments revenue (R&D contracts) averaged 13.4% growth. This quarter, nLIGHT reported year-on-year revenue growth of 16%, and its $51.67 million of revenue exceeded Wall Street's estimates by 9.1%. Company management is currently guiding for a 10.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months. While this projection implies its newer products and services will catalyze better top-line performance, it is still below average for the sector. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. nLIGHT's high expenses have contributed to an average operating margin of negative 19.2% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. Analyzing the trend in its profitability, nLIGHT's operating margin decreased by 21.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. nLIGHT's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, nLIGHT generated a negative 18.6% operating margin. The company's consistent lack of profits raise a flag. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. nLIGHT's earnings losses deepened over the last five years as its EPS dropped 46.6% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, nLIGHT's low margin of safety could leave its stock price susceptible to large downswings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For nLIGHT, its two-year annual EPS declines of 1.1% show it's still underperforming. These results were bad no matter how you slice the data. In Q1, nLIGHT reported EPS at negative $0.04, up from negative $0.17 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast nLIGHT's full-year EPS of negative $0.51 will reach break even. We were impressed by how significantly nLIGHT blew past analysts' EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 16.3% to $10 immediately after reporting. nLIGHT had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
05-05-2025
- Business
- Yahoo
1 Unprofitable Stock Worth Investigating and 2 to Question
Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure. Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. Keeping that in mind, here is one unprofitable company that could turn today's losses into long-term gains and two that could struggle to survive. Trailing 12-Month GAAP Operating Margin: -33.1% Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors. Why Do We Avoid LASR? Annual sales declines of 9.4% for the past two years show its products and services struggled to connect with the market during this cycle Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Eroding returns on capital from an already low base indicate that management's recent investments are destroying value nLIGHT is trading at $8.80 per share, or 2x forward price-to-sales. Read our free research report to see why you should think twice about including LASR in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: -1.6% Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Why Does EVH Worry Us? Sales are projected to tank by 18.9% over the next 12 months as demand evaporates Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.3% for the last five years Negative returns on capital show that some of its growth strategies have backfired Evolent Health's stock price of $10.50 implies a valuation ratio of 16.3x forward P/E. Check out our free in-depth research report to learn more about why EVH doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: -1.3% Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software. Why Is PI on Our Radar? Annual revenue growth of 11.9% over the last two years was superb and indicates its market share increased during this cycle Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 48.4% outpaced its revenue gains Free cash flow margin increased by 23.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders At $102 per share, Impinj trades at 61.7x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
Why nLIGHT, Inc. (LASR) Is Skyrocketing So Far In 2025?
We recently published a list of . In this article, we are going to take a look at where nLIGHT, Inc. (NASDAQ:LASR) stands against other semiconductor stocks that are skyrocketing so far in 2025. The semiconductor industry has been delivering record-breaking numbers in the past two years. It had a solid 2024 where global chip sales increased 19% to $627 billion and this year is already shaping up to smash expectations. Projections point to $697 billion in revenue and the industry is on track to the $1 trillion target by 2030. The CHIPS and Science Act remains active under the Trump administration, so it has been continuing to help those in the semiconductor manufacturing industry. The manufacturing boom here is now starting to spill over into smaller semiconductor players as bigger companies have trouble scaling up to the demand. If you sort semiconductor stocks by YTD gains, you'll mostly find up-and-coming plays. These smaller companies could be the next big winners in the AI race, so it's worth looking into them. For this article, I screened the top-performing semiconductor stocks year-to-date. Stocks that I have covered recently will be excluded from this list. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (). A technician in a lab coat inspecting a semiconductor laser. Number of Hedge Fund Holders In Q3 2024: 21 nLIGHT, Inc. (NASDAQ:LASR) makes high-power semiconductor and fiber lasers. LASR stock is up so much year-to-date due to its CEO saying that the company has strong prospects in aerospace/defense for 2025. Investors seem optimistic despite missing preliminary Q4 revenue guidance. It reported $46 million to $48 million in expected Q4 revenue, whereas the forecast was $49 million to $54 million. This initially caused a 17% drop post-announcement. Regardless, analysts have maintained their bullish sentiment. There has been institutional buying and the stock has short-squeeze potential. The consensus price target of $15.13 implies 35.4% upside. LASR stock is up 6.39% year-to-date. Overall, LASR ranks 13th on our list of semiconductor stocks that are skyrocketing so far in 2025. While we acknowledge the potential of LASR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LASR but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
