nLight, Inc. (NASDAQ:LASR) shares are making substantial sideways moves since it announced its initial public offerings a few months ago. nLight shares are currently trading around $41, up almost 50% from its IPO price of $23 a share.
Bullish outlook for its future fundamentals combined with robust financial numbers is contributing to its share price momentum. nLight manufactures semiconductor lasers, proprietary fiber production technology, as well as fibers for medical, industrial, and consumer applications.
nLight Shares are Up: Future Fundamentals are Solid
The company has been experiencing healthy demand for its products from its end markets, which are accelerating at a double-digit rate.
“We saw activity accelerate across all end markets, led by growth in the industrial end market. Our first quarter results reflect growing customer adoption of our semiconductor and fiber laser technology and demonstrate the expanding global opportunity for high-power lasers,” Scott Keeney, nLight’s President and Chief Executive Officer said.
Financial Numbers are Growing at Sharp Pace
nLight’s first-quarter revenue jumped 42% to $42.5 million compared to the same period last year. The company’s strategy of investing in high margin businesses is helping in generating higher margins. Its first-quarter gross margin stood around 34.7% from 30.0% in the first quarter of 2017.
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nLight generated a net income of $2.9 million for the first quarter, which is significantly higher from a net loss of $1.2 million in the same period last year.
The company expects its second-quarter revenue to hit a record level of $52.0 million, while its gross margin is likely to be in the range of 36%. Its net income from operations is also expected to increase to $7 million. Although its share price valuations are higher than the industry average, nLight share price is likely to receive support from its financial numbers and future fundamentals in the days to come.
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