nLight (NASDAQ:LASR) Announces Earnings Results

nLight (NASDAQ:LASR) posted its quarterly earnings data on Thursday. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.05 by $0.11, FiscalAI reports. The firm had revenue of $73.76 million for the quarter, compared to analyst estimates of $68.16 million. nLight had a negative return on equity of 1.09% and a negative net margin of 4.02%. The company’s revenue was up 10.5% on a year-over-year basis. During the same quarter last year, the company earned $0.08 EPS.

Here are the key takeaways from nLight’s conference call:

• Third-quarter revenue rose 11% year over year to $73.8 million, with record product gross margin of 47.4% and adjusted EBITDA of $11.1 million. Non-GAAP net income was $10.2 million, despite a sequential revenue decline and supply constraints.
• nLIGHT forecast fourth-quarter revenue of $84 million to $90 million and adjusted EBITDA of $12 million to $18 million, expecting sequential growth in both defense and space and advanced manufacturing. The company expects product gross margin to remain above 40% over time.
• Supply constraints prevented about $15 million in product shipments, largely in advanced manufacturing; the fourth-quarter outlook also excludes roughly $15 million of unmet demand. nLIGHT expects to ship that deferred revenue in the first half of 2027, while supplier diversification and other mitigation efforts may require additional investment and increase near-term costs.
• Management cited growing defense demand and its $627 million Joint Laser Weapon System award as support for nLIGHT’s move into system-level directed-energy work. The company sees opportunities in laser sensing, kinetic weapons and space, backed by more than $314 million in cash, restricted cash and investments.

nLight Price Performance

Shares of NASDAQ:LASR traded up $8.68 on Friday, hitting $38.02. The company’s stock had a trading volume of 2,639,121 shares, compared to its average volume of 1,039,083. The company has a 50-day simple moving average of $38.48 and a 200 day simple moving average of $57.21. The company has a market capitalization of $2.19 billion, a PE ratio of -165.30 and a beta of 2.46. nLight has a 1 year low of $28.05 and a 1 year high of $86.95.

Insider Activity

In other news, Director William Gossman sold 15,000 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $44.36, for a total value of $665,400.00. Following the completion of the sale, the director owned 100,251 shares of the company’s stock, valued at approximately $4,447,134.36. The trade was a 13.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Joseph Corso sold 3,524 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $41.49, for a total value of $146,210.76. Following the completion of the sale, the chief financial officer owned 162,200 shares of the company’s stock, valued at $6,729,678. The trade was a 2.13% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 621,149 shares of company stock worth $27,153,700. Corporate insiders own 3.10% of the company’s stock.

nLight News Roundup

Here are the key news stories impacting nLight this week:

• Positive Sentiment: nLIGHT reported Q3 earnings of $0.16 per share, above analyst estimates of roughly $0.05–$0.06. Revenue was $73.76 million, topping the $68.16 million consensus and increasing 10.5% year over year. Management also cited record product gross margins and strong adjusted EBITDA. nLIGHT Q3 results
• Positive Sentiment: Q4 revenue guidance of $84 million–$90 million is well above analysts’ $74.7 million estimate, suggesting stronger near-term demand or execution than expected and providing the main forward-looking catalyst for the stock. nLIGHT results and guidance
• Neutral Sentiment: The company said ongoing supply constraints remain, which could limit its ability to meet demand or deliver on its outlook. nLIGHT Q3 results

Analysts Set New Price Targets

A number of research analysts recently issued reports on LASR shares. Zacks Research lowered shares of nLight from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Weiss Ratings reiterated a “sell (d-)” rating on shares of nLight in a report on Thursday, October 15th. Needham & Company LLC assumed coverage on nLight in a research report on Tuesday. They issued a “buy” rating and a $50.00 target price for the company. Wall Street Zen lowered shares of nLight from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. Finally, Northcoast Research raised nLight from a “neutral” rating to a “buy” rating and set a $75.00 target price on the stock in a research report on Wednesday, October 7th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $82.06.

About nLight

nLight, Inc (NASDAQ: LASR) develops and manufactures semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense, and other specialized applications. Its products are designed to deliver high optical power, precision and reliability for uses such as materials processing, metal cutting and welding, additive manufacturing, and directed-energy systems.

The company offers a range of laser components and systems, including high-power diode lasers, fiber lasers, and related optical and beam-delivery technologies.