Luna Innovations Incorporated (NASDAQ:LUNA)

Luna Innovations Incorporated (NASDAQ:LUNA) Stock Basks in Market Approval

Luna Innovations Incorporated (NASDAQ:LUNA)

Luna Innovations Incorporated (NASDAQ:LUNA) shares are up over 15% in mid-day trading after the high-tech company announced its Q2 financial results. LUNA shares are trading around $1.40 after closing yesterday at $1.23. LUNA shares are normally thinly traded – they have a daily average under 45,000. However today, by noon, over 700,000 shares had traded hands.

LUNA stock chart:

Luna Innovations Incorporated (NASDAQ:LUNA)
One month Luna stock chart

 

Luna Innovation Q2 Financials

Total Q2 2017 revenues for Luna Innovations Incorporated (NASDAQ:LUNA) were $13.6 million compared to $14.6 million for the same period in 2016. Q2 gross profit was $5.1 million, or 37% of revenues, compared to gross profit of $5.2 million, or 35% of revenues, for Q2 2016. The increase in gross margin came from increased product sales that typically have higher average margins than Luna’s other products and services.

Operating loss improved to (-$0.1) million for Q2 2017, compared to an operating loss of (-$0.7) million for Q2 2016. Net loss attributable to common stockholders improved to (-$0.3) million for Q2 2017, compared to a net loss attributable to common stockholders of (-$0.8) million for Q2 2016.

History and LUNA Stock Performance

Luna Innovations Incorporated (NASDAQ:LUNA) develops and commercializes high speed optoelectronics and high performance fiber optic test products for the telecommunications industry as well as distributed fiber optic sensing for the aerospace and automotive industries. Luna is organized into two business segments – Technology Development and Products and Licensing.

At the beginning of 2017, Luna’s stock was trading above $2.20 but then began a downtrend. At current levels LUNA’s stock is threatening to break an important support level just above $1.10. The shares have dropped over 17% YTD, and are down over 19% for the year. Meanwhile, shareholders of LUNA stock have yet to see a per share profit. However last year was the smallest loss recorded since 2012 – (-$0.09) per share. However, sales are improving year-on-year. In 2013 sales were reported at $$18.3 million and that figure was a robust $59.2 million by 2016.

The only analyst that follows Luna Innovations Incorporated (NASDAQ:LUNA) rates LUNA stock as a “Strong Buy” with a price target of $2.25.

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: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.