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Next-generation auto sensor innovator Luminar Technologies (LAZR -2.25%) experienced a remarkable surge in its stock price as the trading week drew to a close on Friday. Investors expressed strong enthusiasm for the company following the announcement of its most recent financial results, resulting in a striking 32% increase in share value for the day. This sharp rise stood in contrast to the relatively modest gains seen in the S&P 500 index (^GSPC -4.84%).
A Focused Vision
Luminar, which specializes in visualization solutions centered around laser-based LiDAR technology, disclosed its fourth-quarter and full-year 2024 performance after the market closed on Thursday.
During the fourth quarter, Luminar generated $22.5 million in revenue, reflecting a 2% increase from the same period in the previous year. Additionally, the company reported a notable reduction in its non-GAAP adjusted net loss, which was just shy of $50 million ($1.42 per share), compared to a loss that approached $79 million the year prior.
In a surprising twist, Luminar’s gross profit shifted into the positive with earnings reaching nearly $12.5 million, contrasting sharply with a loss of more than $14 million reported in the fourth quarter of 2023.
Although Luminar did not meet the consensus analyst estimate for adjusted net loss of $0.14 per share, it significantly outperformed expectations on revenue, surpassing analysts’ projections of just under $17.8 million. Furthermore, analysts had anticipated a gross loss of approximately $12 million.
In the latter part of 2024, Luminar made headlines by revealing that its technology would be featured in a new car model from a major automaker, the ES90 from Volvo, with production expected to commence later this year.
Growth Prospects Ahead
Looking forward, Luminar provided guidance for its anticipated performance throughout 2025. The company forecasts a revenue increase of between 10% and 20% compared to 2024’s figure of $75.4 million. However, it also expects to revert to a gross loss estimated to range from $5 million to $10 million in each quarter of the upcoming year. Notably, the company did not release any forecasts regarding its bottom line.
The encouraging trajectory of gross profit piqued investors’ interest, suggesting a willingness to remain patient as Luminar works towards full profitability. The partnership with Volvo serves as a significant endorsement of LiDAR technology, potentially heralding a positive outlook for Luminar’s future.
Source
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