Technology products maker Luna Innovations Inc. (NASDAQ: LUNA) has reported better-than-expected results for the first quarter of 2022. Adjusted EPS came in at $0.05, higher than the consensus estimate of $0.02 and the year-ago figure of $0.03.
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Total revenues increased 7% year-over-year to $22.5 million on the back of revenues generated by the Lios acquisition.
Gross margin grew to 64%, compared to 58% in the first quarter of last year. Adjusted EBITDA amounted to $1.7 million, up from $1.3 million in the year-ago quarter.
The President and CEO of Luna, Scott Graeff, said, “We surpassed the top end of the Q1 revenue guidance we provided in March, while completing significant events including the divestiture of Luna Labs, the acquisition of Lios and the complete absorption of OptaSense into our operations.”
Outlook
The company has reaffirmed the full-year outlook that it provided in March. It expects total revenues to range from $109 million to $115 million and adjusted EBITDA to lie between 10 million and $12 million.
Further, Luna anticipates second-quarter revenues in the range of $25 million to $27 million.
About Luna Innovations
Headquartered in Virginia, Luna develops and manufactures fiber-optics- and terahertz-based technology products for the aerospace, automotive, communications, defense, energy, infrastructure, security, and silicon photonics industries.
Price Target
Based on a single Hold, the stock has a Hold consensus rating. LUNA’s average price target of $8 implies 42.1% upside potential from current levels. Shares have lost 52.2% over the past year.
Conclusion
Following its results on Monday, LUNA stock gained 4.7%. It continued the rise after the market closed and went up another 1.6% to end the day at $5.72. The company continues to work towards implementing its strategic moves, which should help Luna outperform in the upcoming quarters.
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