LUNA INNOVATIONS Reports Fourth Quarter 2022 Earnings Results on March 14 2023.

Earnings Overview

On March 14, 2023, LUNA INNOVATIONS ($NASDAQ:LUNA) revealed their financial results for the fourth quarter of fiscal year 2022. This quarter saw revenues of USD 0.8 million, a decline of 46.2% from the same period last year. Despite this decrease, net income for the quarter was USD 31.7 million, representing a 30.9% increase from the same quarter in the previous year.

Transcripts Simplified

All participants will be in listen-only mode. (Operator Instructions) After today’s presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded. At this time, I would like to turn the conference over to Michael Bishop, Vice President of Investor Relations. Please go ahead. Michael Bishop: Thank you, Operator. Good morning, everyone and thank you for joining us today. I’m Michael Bishop, Vice President of Investor Relations at Luna Innovations. Joining me on the call today are Scott Graeff, President and CEO and Robert Smith, Senior Vice President and Chief Financial Officer. Before we begin, I would like to remind everyone that our remarks may include forward-looking statements that involve risks and uncertainties, including our expectations regarding the future performance of our business and operating results, our ability to achieve our growth and profitability objectives, market trends and other matters discussed in our SEC filings. Actual results may differ materially from those indicated by forward-looking statements due to a variety of factors, including those described in our most recent annual report on Form 10-K as filed with the SEC and in our other filings. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events or developments, except as required by law.

In addition, during this conference call, we will refer to certain non-GAAP financial measures such as adjusted EBITDA and non-GAAP net income or loss. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings press release and associated tables available on our website at http://www.lunainnovations.com. Now I’d like to turn the call over to Scott for his opening remarks followed by Bob for additional financial details. Scott? Scott Graeff: Thanks, Mike. Good morning, everyone and thank you for joining us on the call today. As a reminder, our primary focus is to drive long term value for our shareholders by growing revenue, expanding margins and improving operating efficiencies.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Luna Innovations. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Luna Innovations. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Luna Innovations. More…

Key Ratios Snapshot

Some of the financial key ratios for Luna Innovations are shown below. More…

Stock Price

On Tuesday, March 14th 2023, LUNA INNOVATIONS reported its fourth quarter 2022 earnings results. The stock opened at $9.4 and closed at $9.6 at the end of the day, a 4.0% increase from its previous closing price of $9.2. The company saw a steady increase in share price throughout the day as investors reacted to the news. LUNA INNOVATIONS is a technology firm focused on creating innovative solutions to improve safety and efficiency in a variety of industries. They specialize in creating software and hardware solutions that are tailored to their clients’ needs.

This was largely attributed to their successful push into the industrial sector, as well as their expansion of their customer base. Overall, the stock market reacted positively to LUNA INNOVATIONS’ earnings report and the company’s strong financial results. Investors seem confident that their growth will continue in the coming quarters, with the company’s innovative technologies offering potential for further increases in revenue and profits. Live Quote…

Analysis

GoodWhale conducted an in-depth analysis of LUNA INNOVATIONS’ fundamentals. According to our Star Chart, LUNA INNOVATIONS is strong in asset, growth, and medium in profitability while weak in dividend. The company has an intermediate health score of 6/10 taking into account its cashflows and debt, indicating that it is likely to sustain future operations even in times of crisis. Based on our analysis, we classify LUNA INNOVATIONS as a ‘cheetah’: a type of company that achieves high revenue or earnings growth, but is considered less stable due to lower profitability. Investors interested in such companies should be prepared to take higher risks for higher rewards. 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

LUNA INNOVATIONS Incorporated recently reported their fourth quarter earnings for fiscal year 2022. Revenues for the quarter fell by 46.2% compared to the same period last year, however net income rose by 30.9%. The stock price reacted positively the same day, signaling a positive sentiment from investors.

Despite the decrease in revenue, analysts are encouraged by the jump in profits, suggesting that LUNA is focusing on optimizing its operations and cutting costs. Going forward, investors should continue to monitor the company for changes in profitability and keep an eye out for any potentially disruptive developments.