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LightPath (LPTH) Gears Up for Q4 Earnings: What's in Store?

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LightPath Technologies, Inc.’s (LPTH - Free Report) fiscal fourth-quarter 2020 results are expected to reflect healthy demand across all product lines.

In the last reported quarter, the company delivered an earnings surprise of 200.00%.

It topped the Zacks Consensus Estimate once and missed twice in the trailing four quarters, delivering an average negative earnings surprise of 266.67%.

Fiscal Fourth-Quarter Expectations

For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is currently pegged at 1 cent per share, indicating an increase of 114.29% from the year-ago reported figure.

The Zacks Consensus Estimate for revenues is pegged at $9.19 million, indicating an increase of 5.03% from the year-ago reported figure.

Let’s see how things have shaped up for this announcement.

Performance in the Last Reported Quarter

LightPath reported fiscal third-quarter 2020 non-GAAP earnings of 3 cents per share, beating the Zacks Consensus Estimate by 2 cents.

Revenues of $8.7 million in the last reported quarter were up 10% year over year.

Factors to Note

The company is expected to have performed well in the quarter to be reported due to strong demand for products supplied to the medical industry.

It has been gaining solid momentum across optical products and for infrared lenses utilized in temperature reading, heat imaging, as well as sensing technologies.

The company’s molded IR products — which include those made with LightPath's new BD6 material — has been witnessing strong demand driven by medical applications, particularly fever detection, and continued demand for industrial applications, firefighting, as well as other public safety applications.

In addition, its ongoing cost-reduction activities, disciplined expense management and a favorable revenue mix are expected to have helped margins to expand in the to-be-reported quarter.

These factors are also expected to have aided the top line in the to-be-reported quarter.

However, the company witnessed a decline in sales to academic institutions as they were temporarily closed. This is expected to impact results to some extent. Also, weakness in consumer goods markets remained a matter of concern.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for LightPath this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, LightPath has a Zacks Rank #3.

Stocks to Consider

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise in the upcoming releases.

Cogent Communications Holdings (CCOI - Free Report) has an Earnings ESP of +11.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics (SYNA - Free Report) has an Earnings ESP of +10.60% and currently carries a Zacks Rank of 2.

Benefitfocus has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.

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