LightPath Technologies (NASDAQ:LPTH) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

LightPath Technologies (NASDAQ:LPTH) posted its quarterly earnings results on Tuesday. The technology company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.03) by $0.01, FiscalAI reports. LightPath Technologies had a negative return on equity of 7.02% and a negative net margin of 28.65%. The company had revenue of $20.76 million for the quarter, compared to the consensus estimate of $21.93 million.

Here are the key takeaways from LightPath Technologies’ conference call:

• Fiscal Q1 revenue rose 38% year over year to $20.8 million, while gross margin expanded to 41.4% from 29.8%, largely on a higher mix of assemblies and modules. Adjusted EBITDA was positive for the fifth consecutive quarter, and net loss narrowed to $1.7 million.
• Backlog reached a record $132.9 million, up 54% year over year, with $110.8 million requested for delivery within 12 months and a roughly 2.0-times book-to-bill ratio. Management cited substantial follow-on counter-UAS orders and a new order for more than 50,000 drone-camera optical assemblies.
• LightPath is investing in new infrared cameras, zoom lenses, and BlackDiamond glass, including products intended to replace germanium optics. Management sees potential in defense programs and drone demand, though newer products currently contribute only modestly to backlog.
• Supply-chain delays caused revenue to come in below management’s expectations, and executives acknowledged that constrained suppliers and production capacity could challenge delivery execution. Cash used in operations was $8.3 million, including a $13.5 million inventory build, as the company prepares to fulfill backlog and expand capacity.
• The company completed its divestiture of all China operations, which management described as strategically important and necessary for participation in certain U.S. government programs. It expects no disruption to commercial customers because the buyer will remain a supplier.

LightPath Technologies Trading Down 0.2%

LPTH stock traded down $0.02 during midday trading on Tuesday, hitting $7.99. The company’s stock had a trading volume of 2,632,710 shares, compared to its average volume of 3,119,602. The company has a market cap of $560.02 million, a PE ratio of -19.97 and a beta of 1.53. LightPath Technologies has a 12 month low of $5.83 and a 12 month high of $18.94. The firm’s 50-day moving average is $9.05 and its 200-day moving average is $11.76.

Wall Street Analyst Weigh In

Several research firms have commented on LPTH. Wall Street Zen downgraded LightPath Technologies from a “hold” rating to a “sell” rating in a report on Sunday, September 20th. Weiss Ratings reissued a “sell (d-)” rating on shares of LightPath Technologies in a research note on Thursday, October 15th. Canaccord Genuity Group reduced their price target on LightPath Technologies from $16.50 to $15.50 and set a “buy” rating for the company in a report on Tuesday, September 1st. Finally, Piper Sandler reduced their price target on LightPath Technologies from $15.00 to $13.00 and set an “overweight” rating for the company in a report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $13.70.

LightPath Technologies Company Profile

LightPath Technologies, Inc. is a photonics and optics manufacturer that develops, manufactures, and distributes precision optical components, assemblies, and imaging systems. The company’s products are designed for applications that require the control, transmission, or detection of light across visible, near-infrared, and infrared wavelengths. Its product portfolio includes precision-molded glass aspheric lenses, infrared optics, coated optical components, custom optical assemblies, and thermal imaging solutions.