LightPath Technologies (NASDAQ:LPTH) Announces Quarterly Earnings Results

LightPath Technologies (NASDAQ:LPTH) issued its quarterly earnings data on Tuesday. The technology company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.01, FiscalAI reports. LightPath Technologies had a negative net margin of 28.65% and a negative return on equity of 7.02%. The business had revenue of $20.76 million during the quarter, compared to analyst estimates 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 Stock Down 5.5%

Shares of NASDAQ:LPTH traded down $0.44 during midday trading on Wednesday, reaching $7.55. The company’s stock had a trading volume of 1,635,749 shares, compared to its average volume of 3,112,758. The firm has a market capitalization of $529.18 million, a P/E ratio of -18.88 and a beta of 1.53. The firm has a 50 day moving average of $9.01 and a 200-day moving average of $11.73. LightPath Technologies has a 12-month low of $5.83 and a 12-month high of $18.94.

Wall Street Analyst Weigh In

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

LightPath Technologies Company Profile

LightPath Technologies, Inc. designs and manufactures optical components and assemblies for commercial and government customers. Its products include precision-molded glass aspheric lenses, infrared optics, and custom optical systems used in applications such as thermal imaging and sensing. The company serves markets including aerospace and defense, industrial, medical, and telecommunications. Its capabilities span optical design, materials development, manufacturing, and assembly, supporting customers from component selection through integrated optical solutions.