Shares of nLIGHT (LASR) plummeted over 7% in pre-market trading on Thursday, following the company's release of its Q3 2024 earnings results. Despite reporting revenue growth, the semiconductor laser manufacturer continued to post sizable losses for the quarter, disappointing investors.
nLIGHT's Q3 revenue increased year-over-year, driven by strong demand for its cutting-edge laser products. However, the company's bottom line remained deeply in the red, with mounting losses that exceeded analysts' expectations. The sustained lack of profitability raised concerns among investors about nLIGHT's ability to effectively manage costs and achieve consistent profitability.
The earnings miss and lack of a clear path to profitability appears to have spooked investors, leading to a sharp sell-off in nLIGHT's stock price ahead of the market open. Analysts caution that the company may need to provide a more concrete plan for achieving sustained profitability to restore confidence and stabilize the stock.
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