LightPath Technologies, Inc. (NASDAQ:LPTH) Rises as Earnings Beat

LightPath Technologies, Inc. (NASDAQ:LPTH)

Shares of LightPath Technologies, Inc. (NASDAQ:LPTH) appreciated by over 8% last week following the release of the firm’s fourth quarter financial results. The firm registered earnings per share of $0.24 which exceeded expectations by approximately 22%. Total revenues came to $9 million and this exceeded Wall Street’s estimates by approximately $250,000. Compared to a similar quarter one year ago this was an increase of 90.3%.

One month LPTH stock price chart

“LightPath completed fiscal 2017 with very strong fourth quarter financial results. We delivered significant growth in key performance metrics, including revenue, earnings per share, adjusted EBITDA, and cash flow,” said the chief executive officer and president of LightPath Technologies, Inc. (NASDAQ:LPTH), Jim Gaynor.

Improved performance

According to the Chief Executive Officer of LightPath Technologies, Inc. (NASDAQ:LPTH) the impressive results were a result of improved performance in key metrics including cash flow, adjusted EBITDA, earnings per share, and revenue. Total expenses and costs declined by 36% in Q4. In a similar quarter a year ago, total expenses and costs had reduced by 41%.

Operating income increased by 117% to reach a figure of $1.1 million. In the fourth quarter of the 2016 fiscal year, the operating income was $522,000. For the full year operating income reached a figure of $4.2 million compared to a figure of $2 million in the previous fiscal year. Net income on the other hand increased to $6.4 million in Q4 of 2017. Last year’s Q4 reported net income was $331,000. The entire 2017 fiscal year’s net income was $7.7 million while last year’s was $1.4 million.

Adjusted net income

Adjusted net income also rose to $6.2 million in Q4 of this fiscal year compared to a figure of $359,000 which was recorded in the last fiscal year. LightPath Technologies, Inc. (NASDAQ:LPTH) also recorded income resulting from foreign currency exchange fluctuations. Changes in the exchange rates of the Euro and the Chinese Yuan led to an income of $333,000 and this had an impact of $0.01 on the diluted and basic earnings per share.

EBITDA improved by 243% to reach a figure of $2.3 million. In a similar quarter during the previous fiscal year EBITDA stood at $646,000. For the entire year EBITDA was $5.9 million compared to the $2.5 million recorded in 2016. In Q4 total bookings also increased by 21% compared to Q4 of the 2017 fiscal year. When compared to a similar quarter 12 months ago, the increase in total bookings was 66%.

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

LightPath Technologies, Inc. (NASDAQ:LPTH) Executes Vertical Integration Strategy

LightPath Technologies, Inc. (NASDAQ:LPTH)

LightPath Technologies, Inc. (NASDAQ:LPTH) today announced, as part of their vertical integration strategy, the addition of glass manufacturing abilities. This ability also supports their subsidiary’s, ISP Optics, diamond and coating options. ISP Optics was acquired several months ago. News of the company’s new production capabilities was warmly received by the market as LPTH shares are up 15% on heavy volumes – over ten times their daily average.

Since 2009 LPTH shares have generally traded, on a dilution-adjusted basis, between $0.50 and $3.50 with most of the price action taking place between $1.00 and $2.50. LPTH has a 52-week high of $2.64 and a 52-week low of $1.21. LPTH shares have a Relative Strength figure over 78. Market observers believe a number above 70 indicates a stock that is trending to “overbought” status. According to records, institutional investors have recently more than tripled their holdings in LPTH.

LightPath Technologies, Inc. (NASDAQ:LPTH) designs, develops, manufactures, and distributes optical components and assemblies. LightPath offers precision molded glass aspheric optics, infrared aspheric lenses, Gradium glass lenses, and other optical materials used to produce products that manipulate light. Its products are used in various industries, including defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other industries. The company sells its products directly to customers in North America and China, as well as through distributors and channel partners in Europe, the United States, and internationally.

LightPath Technologies, Inc. (NASDAQ:LPTH) has seen impressive performance as of late. LPTH shares are up over 11% in the past month, up over 70% YTD, and up over 34% for the year. LightPath has increased sales YoY since 213 when the company posted a figure of $11.8 million. By 2016 that number grew to $17.3 million. EPS improved for LPTH shareholders from 2015 to 2016. In 2015 there was an EPS loss of -$0.06 but in 2016 there was an EPS profit of $0.09. Dilution has been manageable given the stock’s performance. In 2013 there were 12.1 million shares of LPTH outstanding and that grew to 15.4 million by the end of 2016. Two firms follow LightPath Technologies, Inc. (NASDAQ:LPTH). One rates LPTH shares as a “Strong Buy” and one rates the shares as a “Buy”. Their consensus price target is $2.93 – about a dime below current trading levels.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

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.