Luna Innovations Intrinsic Value Calculator – LUNA INNOVATIONS Reports Third Quarter Earnings Results for FY2023
November 28, 2023
🌥️Earnings Overview
LUNA INNOVATIONS ($NASDAQ:LUNA) reported a 5.3% increase in total revenue for the third quarter of FY2023, ending September 30, 2023, to USD 30.7 million. Net income for the quarter, however, decreased 61.7% year over year to USD 0.46 million.
Price History
On Tuesday, LUNA INNOVATIONS reported their earnings results for the third quarter of fiscal year 2023. The stock opened at $5.4 and closed at $5.2, indicating a 4.5% drop from their last closing price of $5.4. This is the third consecutive quarter that LUNA INNOVATIONS have seen a drop in stock prices, raising concerns about the company’s ability to sustain its growth in the long-term. Despite this decline in stock price, LUNA INNOVATIONS reported positive financial results for the quarter with a 4% increase in revenue compared to the previous quarter.
LUNA INNOVATIONS CEO, Andrew Knight, has expressed his confidence in the company’s future prospects despite its current issues with stock prices. “We remain confident that our long-term financial objectives are achievable and we remain committed to our mission of delivering innovative products and services to our customers,” said Knight. The company’s commitment to innovate and serve its customers suggests that they are well-positioned to succeed in the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Luna Innovations. More…
| Total Revenues | Net Income | Net Margin |
| 116.61 | -2.12 | -1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Luna Innovations. More…
| Operations | Investing | Financing |
| -13.42 | -1.5 | 12.28 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Luna Innovations. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 165.09 | 70.48 | 2.79 |
Key Ratios Snapshot
Some of the financial key ratios for Luna Innovations are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.2% | -65.8% | 0.4% |
| FCF Margin | ROE | ROA |
| -13.6% | 0.3% | 0.2% |
Analysis – Luna Innovations Intrinsic Value Calculator
After a comprehensive analysis of LUNA INNOVATIONS‘ fundamentals, we at GoodWhale have determined that the intrinsic value of LUNA INNOVATIONS share is around $9.0. This value was calculated using our proprietary Valuation Line. Currently, LUNA INNOVATIONS stock is traded at $5.2, which leads to an undervaluation of 42.4%. This implies that investors may be able to purchase LUNA INNOVATIONS shares for a discount relative to its intrinsic value. More…
Peers
Headquartered in Roanoke, Virginia, Luna has about 200 employees and operates in over 30 countries. Its products are used in a variety of industries, including aerospace, automotive, biomedical, defense, and telecommunications. Luna’s primary competitors are Gooch & Housego PLC, Viscom AG, and Wuhan Raycus Fiber Laser Technologies Co Ltd. These companies are all based in Europe and Asia, respectively.
– Gooch & Housego PLC ($LSE:GHH)
Gooch & Housego PLC is a leading international provider of advanced photonic solutions. They design, manufacture and supply optical components, systems and instrumentation to meet the needs of their customers worldwide. Gooch & Housego has a market cap of 119.45M as of 2022 and a Return on Equity of 3.16%. The company is headquartered in the United Kingdom and has operations in the United States, Europe and Asia.
– Viscom AG ($LTS:0GED)
Vcom AG is a German company that provides software for the visual inspection of products. Its products are used in a variety of industries, including automotive, electronics, food and beverage, and pharmaceuticals. The company has a market cap of 71.97 million as of 2022 and a return on equity of 4.98%.
– Wuhan Raycus Fiber Laser Technologies Co Ltd ($SZSE:300747)
Raycus is a Chinese company that manufactures fiber lasers. It is headquartered in Wuhan, China and was founded in 2007. The company went public on the Shenzhen Stock Exchange in 2014. As of 2022, Raycus has a market cap of 15.78B and a ROE of 2.49%. The company’s products are used in a variety of applications including cutting, welding, and marking.
Summary
Investors have taken a pessimistic view on LUNA INNOVATIONS following the release of its third quarter earnings results for FY2023, which ended on September 30, 2023. Revenue for the quarter increased by 5.3% year over year, but net income decreased by 61.7%. As a result, the stock price has declined on the same day. Investors should be cautious in investing into LUNA INNOVATIONS given the weak outlook for future quarters and a lack of visibility into how the company plans to turn its performance around.
