Key Highlights

  • Shares were up 0.08% pre-market at $35.80 after a 3.66% Monday decline.
  • Q3 results are due Thursday after the close, with a call at 5:00 p.m. ET.
  • Analysts expect Revenue of about $68.2 million versus $82.6 million in Q2.

nLIGHT (NASDAQ:LASR) traded little changed in pre-market on Tuesday at $35.80, up 0.08% from a Monday close of $35.77. The stock fell 3.66% in the prior session as the broader semiconductor group stayed weak.

nLIGHT is a Camas, Washington maker of high-power semiconductor and fiber lasers, fiber amplifiers and beam control systems. It serves aerospace and defense, industrial and microfabrication markets and has about 800 employees.

What Analysts Expect From the Q3 Report

The company reports third quarter results after the close on Thursday, Nov. 5, with a conference call at 5:00 p.m. ET. Analysts expect revenue of roughly $68.2 million, about 2% above a year earlier and below the record $82.6 million reported in the second quarter.

Second quarter revenue of $82.59 million compared with $78.58 million expected, up 33.8% year over year. The company has beaten estimates in six of the last seven quarters, with revenue surprises ranging from about 4.5% to 11.2% over the last four.

Defense Demand Is the Backdrop

The second quarter was driven by strong defense demand, with gross Margin at 31.1%. A July Department of War laser award was worth $44 million initially and up to $627 million in potential orders.

Share Price Sits Far Below the 52-Week High

At $35.80, the shares are about 59% below the 52-week high of $86.95 and about 28% above the 52-week low of $28.05. Market Capitalization is about $2.06 billion, with a forward price-to-earnings ratio of 71.84 and trailing EPS of $0.48.

Earnings data lists an average one-day post-earnings move of about 15.7% and an implied move near 15.0%.

Thursday's Call Is the Next Checkpoint

Investors will focus on the sequential revenue outlook, with fourth quarter consensus near $74.9 million, and on profitability, with full-year EPS consensus near negative $0.19. Commentary on demand trends will also be watched.