nLight (NASDAQ:LASR) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• nLight reported quarterly EPS of $0.16, beating the $0.05 consensus estimate, while revenue of $73.76 million exceeded forecasts and rose 10.5% year over year.
• The company forecast fourth-quarter revenue of $84 million to $90 million, above analyst expectations, and adjusted EBITDA of $12 million to $18 million.
• Supply constraints continue to limit shipments: nLight said about $15 million in products were deferred, with delivery expected in the first half of 2027; mitigating the constraints may add near-term costs.

nLight (NASDAQ:LASR - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.11, FiscalAI reports. The company had revenue of $73.76 million during the quarter, compared to analyst estimates of $68.16 million. nLight had a negative net margin of 4.02% and a negative return on equity of 2.83%. The firm's revenue was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the business 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 Stock Up 29.6%

Shares of NASDAQ:LASR traded up $8.68 during mid-day trading on Friday, reaching $38.02. 2,639,121 shares of the stock were exchanged, compared to its average volume of 1,028,903. The stock's 50 day simple moving average is $38.48 and its 200-day simple moving average is $57.21. nLight has a one year low of $28.05 and a one year high of $86.95. The company has a market cap of $2.19 billion, a P/E ratio of -165.30 and a beta of 2.46.

Insider Transactions at nLight

In other nLight news, CAO James Nias sold 1,025 shares of the company's stock in a transaction that occurred 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 transaction, the chief accounting officer owned 96,596 shares of the company's stock, valued at $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 is available through this link. 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 firm's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $44.36, for a total transaction of $665,400.00. Following the transaction, the director directly owned 100,251 shares of the company's stock, valued at $4,447,134.36. This represents a 13.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 621,149 shares of company stock worth $27,153,700. Corporate insiders own 3.10% of the company's stock.

Analyst Upgrades and Downgrades

LASR has been the topic of several recent analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of nLight in a report on Thursday, October 15th. Zacks Research downgraded nLight from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Wall Street Zen lowered nLight from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. UBS Group set a $90.00 price objective on nLight in a report on Friday, July 10th. Finally, Needham & Company LLC assumed coverage on nLight in a research report on Tuesday. They issued a "buy" rating and a $50.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $82.06.

Key Stories Impacting nLight

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

nLight Company Profile

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.

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