Luminar Technologies (NASDAQ:LAZR) reported a non-GAAP loss per share of $.27 for the second quarter of 2022, missing consensus by $.03. Revenues of $9.9 million increased by 29% as compared to the second quarter of 2021.
At the end of June 30, 2021, the company had cash and investments of $605.3 million.
Second Quarter Highlights
The company continues to target series production for the Iris Lidar and related software by the end of 2022. Also, the Beta release of the Sentinel software remains on schedule for this year. Sentinel is software designed for proactive safety and highway autonomy.
Luminar is currently focused on the industrialization of Iris and key customer programs. The company and their partner Celestica (NYSE:CLS) began prepping for volume production during the quarter. Plans for the new high-volume manufacturing facility are progressing and are expected to come online in the second half of 2023. The facility is anticipated to have an annual capacity of 250,000 units.
During the second quarter of 2022, the company announced a partnership with tech mobility company ECARX. The partnership enables Luminar to expand into the Chinese market.
Updated 2022 Financial Guidance
For 2022, the company increased its revenue forecast to the range of $40-$45 million from its prior guidance of $40 million. In addition, management raised its full-year forward-looking order book guidance growth to 60% from its previous forecast of 40%.
We are maintaining our Buy rating but reducing the price target by $13 to $24 per share. We lowered our Price/Sales multiple to 25.0X from 35.0X and reduced 2023E Sales by $45 million to $338 million.
Despite the positive outlook for Luminar within the Lidar and automotive industry, we expect OEM sales to slow down from high inflation and the possibility of a recession.
Company Description
Luminar Technologies is an automotive technology company focusing on developing, designing, and manufacturing of Autonomous Driving (AD) and Advance Driver-Assistance System (ADSA) platforms. The company has built a LIDAR system (Light Detection and Ranging) that enables Autonomous Driving or driver-assist for commercial and passenger vehicles.
LIDAR (Light Detection and Ranging) is a remote sensing and perception system that uses laser pulses to measure range and distance and detects surface objects in real-time and 3D.
Valuation
We are maintaining our Buy rating and our $24 per share price target. Our price target is based on a 25.0x Price/Sales multiple and 2024E Sales of $338 million.
Source: Analyst estimate