Laser company nLIGHT (NASDAQ:LASR) will be reporting results tomorrow afternoon. Here’s what you need to know.

nLIGHT beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $56.13 million, up 10.9% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EBITDA estimates.

Is nLIGHT a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting nLIGHT’s revenue to decline 5.2% year on year to $49.19 million, improving from the 8.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. nLIGHT has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.

Looking at nLIGHT’s peers in the electronic components segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Advanced Energy delivered year-on-year revenue growth of 2.5%, beating analysts’ expectations by 5.5%, and Bel Fuse reported revenues up 7%, topping estimates by 18.6%. Advanced Energy traded up 11% following the results while Bel Fuse’s stock price was unchanged.

Read our full analysis of Advanced Energy’s results here and Bel Fuse’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the electronic components stocks have shown solid performance, the group has generally underperformed, with share prices down 5.6% on average over the last month. nLIGHT is down 10% during the same time and is heading into earnings with an average analyst price target of $15.33 (compared to the current share price of $9.97).

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