LightPath Technologies (NASDAQ:LPTH) Posts Earnings Results

LightPath Technologies (NASDAQ:LPTH) released its quarterly earnings results on Tuesday. The technology company reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.03) by $0.01, FiscalAI reports. The company had revenue of $20.76 million for the quarter, compared to the consensus estimate of $21.93 million. LightPath Technologies had a negative net margin of 25.00% and a negative return on equity of 5.45%.

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 6.8%

LPTH stock traded down $0.51 on Thursday, hitting $7.01. 1,138,617 shares of the company’s stock traded hands, compared to its average volume of 3,115,839. The stock has a market cap of $491.33 million, a price-to-earnings ratio of -20.03 and a beta of 1.53. LightPath Technologies has a 1-year low of $5.83 and a 1-year high of $18.94. The stock has a fifty day moving average of $8.97 and a 200-day moving average of $11.70.

Wall Street Analysts Forecast Growth

LPTH has been the topic of several research analyst reports. Wall Street Zen cut LightPath Technologies from a “hold” rating to a “sell” rating in a research report on Sunday, September 20th. Canaccord Genuity Group dropped their price objective on LightPath Technologies from $16.50 to $15.50 and set a “buy” rating on the stock in a research note on Tuesday, September 1st. Weiss Ratings restated a “sell (d-)” rating on shares of LightPath Technologies in a report on Thursday, October 15th. Finally, Piper Sandler decreased their target price on LightPath Technologies from $15.00 to $13.00 and set an “overweight” rating for the company in a research note on Friday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, LightPath Technologies currently has a consensus rating of “Moderate Buy” and an average target price of $14.38.

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.