What's in the Cards for LAZR Stock Before It Reports Q4 Earnings?

Luminar Technologies LAZR is set to report fourth-quarter 2024 results on March 20.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

For the fourth quarter of 2024, LAZR expects revenues to grow moderately relative to the third quarter of 2024, driven by growth in sensor sales, including the continued ramp of the Volvo EX90 as well as non-series production revenues.

The Zacks Consensus Estimate for LAZR’s fourth-quarter revenues is pegged at $16.76 million, indicating a year-over-year decline of 24.2%.

The consensus mark for Luminar’s loss is pegged at $2.47 per share and has widened by 12.27% over the past seven days. The figure suggests growth of 17.67% on a year-over-year basis.

LAZR beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 8.54%.

Luminar Technologies, Inc. Price and EPS Surprise

Luminar Technologies, Inc. price-eps-surprise | Luminar Technologies, Inc. Quote

Let us see how things have shaped up for this announcement.

Factors to Consider

Several factors are expected to have influenced LAZR’s fourth-quarter results. One major challenge for the company has been the slower-than-expected ramp-up in series production for its automotive customers. As a result, Luminar has been experiencing higher inventory levels of its LiDAR sensors, leading the company to temporarily scale down its manufacturing rate for several weeks in the third quarter of 2024. This momentum is expected to have continued in the fourth quarter.

On the cost front, LAZR has been focusing on operational efficiency, implementing cost reductions and targeting non-technical general and administrative overheads. This is expected to have generated an annualized cost savings of approximately $80 million and improved its financial position. Thus, the company’s fourth-quarter gross loss is expected to have improved compared to the third quarter. Operating expenses and cash flow are also likely to have benefited from these measures, although some of these gains are anticipated to be offset by the higher interest expenses from the company’s convertible debt transaction.

Due to the restructuring costs and potential draws on its equity line of credit, Luminar has adjusted its year-end cash and liquidity targets downward, to a range of $230 million to $240 million, from its previous estimate of $240 million.

Despite the challenges, Luminar has been making progress on key business milestones, including the expansion of its partner network and the preparation for mass adoption of its next-generation LiDAR technology. The company’s execution of major automotive programs, such as Volvo’s EX90, is expected to boost LAZR’s top-line growth.

Luminar’s first Point Cloud, Luminar Halo, is designed to accelerate mass adoption of long-range LiDAR data fidelity for improved safety and autonomous capabilities. The company started its deliveries to select customers in the to-be-reported quarter and is expected to have aided LAZR’s results.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Luminar Technologies has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

ChargePoint CHPT reported a fourth-quarter fiscal 2025 loss of 6 cents per share on March 4, narrower than the Zacks Consensus Estimate of 8 cents. The company reported a loss of 13 cents per share in the year-ago period. Revenues of $101.89 million, however, missed the Zacks Consensus Estimate of $104 million and decreased 12% on a year-over-year basis, primarily due to lower networked charging systems revenues.

Strattec Security STRT posted second-quarter fiscal 2025 EPS of 65 cents on Jan. 23, beating the Zacks Consensus Estimate of 28 cents. The company reported an EPS of 26 cents in the year-ago period. Revenues of $130 million beat the Zacks Consensus Estimate of $125 million and increased 9.2% on a year-over-year basis as a result of new program launches and increased demand from customers.

Holley HLLY reported fourth-quarter 2024 EPS of 11 cents per share on March 11, beating the Zacks Consensus Estimate of 2 cents per share. The company broke even in the year-ago quarter. Revenues of $140 million beat the Zacks Consensus Estimate of $137 million but fell 10.3% on a year-over-year basis, driven by growth in its power brands like Stilo, Simpson, Dinan, ADS and Cataclean.

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This article originally published on Zacks Investment Research (zacks.com).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.