nLight (NASDAQ:LASR) Issues Earnings Results

nLight (NASDAQ:LASR) announced its quarterly earnings data on Thursday. The company reported $0.16 EPS for the quarter, beating analysts’ consensus estimates of $0.05 by $0.11, FiscalAI reports. nLight had a negative net margin of 4.02% and a negative return on equity of 2.83%. The company had revenue of $73.76 million during the quarter, compared to the consensus estimate of $68.16 million. During the same quarter last year, the firm posted $0.08 EPS. The company’s quarterly revenue was up 10.5% on a year-over-year basis.

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

nLight stock traded up $8.68 during mid-day trading on Friday, reaching $38.02. 2,639,121 shares of the company were exchanged, compared to its average volume of 1,028,903. The company has a fifty day simple moving average of $38.48 and a 200-day simple moving average of $57.21. nLight has a 12 month low of $28.05 and a 12 month high of $86.95. The firm has a market cap of $2.19 billion, a PE ratio of -165.30 and a beta of 2.46.

Key nLight News

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

Insider Activity

In other news, CAO James Nias sold 1,025 shares of the company’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $40.69, for a total transaction of $41,707.25. Following the completion of the sale, the chief accounting officer directly owned 96,596 shares in the company, valued at approximately $3,930,491.24. This represents a 1.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director William Gossman sold 15,000 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $44.36, for a total value of $665,400.00. Following the sale, the director directly owned 100,251 shares in the company, valued at approximately $4,447,134.36. This trade represents a 13.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 621,149 shares of company stock worth $27,153,700. 3.10% of the stock is owned by insiders.

Analyst Ratings Changes

Several research firms have weighed in on LASR. Weiss Ratings reissued a “sell (d-)” rating on shares of nLight in a report on Thursday, October 15th. UBS Group set a $90.00 price objective on nLight in a report on Friday, July 10th. Northcoast Research upgraded nLight from a “neutral” rating to a “buy” rating and set a $75.00 price objective for the company in a report on Wednesday, October 7th. Needham & Company LLC started coverage on nLight in a research report on Tuesday. They issued a “buy” rating and a $50.00 target price on the stock. Finally, Wall Street Zen lowered nLight from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target 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.