Technology

Market Dims on LightPath Technologies, Inc. (NASDAQ:LPTH)

LightPath Technologies, Inc. (NASDAQ:LPTH)

LightPath Technologies, Inc. (NASDAQ:LPTH)

Last Friday, LightPath Technologies, Inc. (NASDAQ:LPTH) shares dropped over 22%, and closed at $2.91, after the company released Q1 2018 earnings after the market closed on Thursday. The market punished shares of the electrical equipment manufacturer after earnings beat results from the same period last year, but were below analyst estimates.

LightPath Technologies, Inc. (NASDAQ:LPTH)

Lightpath Earnings Report

LightPath Technologies, Inc. (NASDAQ:LPTH) reported Q1 2018 EPS at $0.01, while analysts were expecting $0.03. Revenues came in at $7.6 million but analysts were looking for a figure of $8.4 million. LPTH stock gapped down on the news and opened at $3.40 after closing on Thursday at $3.74. Shares continued to dive until the last hour of trading and hit a daily. Shares settled the day at $2.91.

The earnings report showed improvements on many fronts, but the improvements were not as aggressive as the market was expecting. Q1 2018 revenue increased 51% to approximately $7.6 million, as compared to approximately $5.0 million for Q1 2017. Adjusted net income, which excludes the non-cash income or expense related to the change in fair value of their stock warrant liabilities, were approximately $169,000, versus approximately $97,000 for the same period last year. Adjusted EBITDA, which excludes the non-cash income or expense related to the change in fair value of our warrant liability, was approximately $1.2 million, an increase of 99%, as compared to $619,000 for Q1 2017.

Orlando, FL-based LightPath Technologies, Inc. (NASDAQ:LPTH) is a vertically integrated provider of optics, photonics, and infrared solutions for the global industrial, defense, telecommunications, testing and measurement, and medical industries. LightPath designs, manufactures, and distributes proprietary optical and infrared components including molded glass aspheric lenses and assemblies, infrared lenses and thermal imaging assemblies, fused fiber collimators, and gradient index GRADIUM® lenses. LightPath also offers custom optical assemblies, including full engineering design support.

LPTH Stock Performance

LightPath Technologies, Inc. (NASDAQ:LPTH) has more than doubled sales since 2014 when the company posted a figure of $11.8 million. That number was $28.4 million for 2017. Earnings have also shown improvement. In 2015, LPTH EPS was (-$0.05), but that was followed by two years of positive EPS. For 2017 the EPS profit was $0.39.

Investors rewarded the company over the past year by buying the shares and sending the stock up over 70%. For the year, LPTH shares are up nearly 90%. The analysts’ consensus, one-year price target was, before Friday, $3.05.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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