nLIGHT, Inc. (NASDAQ:LASR) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

Explore nLIGHT's Fair Values from the Community and select yours

nLIGHT, Inc. (NASDAQ:LASR) just released its second-quarter report and things are looking bullish. nLIGHT outperformed estimates, with revenues of US$62m beating estimates by 12%. Statutory losses were US$0.07, 69% smaller thanthe analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, nLIGHT's seven analysts are now forecasting revenues of US$239.7m in 2025. This would be a solid 10% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 50% to US$0.47. Before this earnings announcement, the analysts had been modelling revenues of US$220.3m and losses of US$0.80 per share in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very promising decrease in loss per share in particular.

View our latest analysis for nLIGHT

The consensus price target rose 60% to US$27.42, with the analysts encouraged by the higher revenue and lower forecast losses for next year. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on nLIGHT, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$25.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that nLIGHT's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 22% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.1% per year. Not only are nLIGHT's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple nLIGHT analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for nLIGHT you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.