Luminar Technologies (LAZR Quick QuoteLAZR - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 28, after the closing bell. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 15 cents per share for the quarter. The consensus mark for Luminar’s fourth-quarter loss per share has widened by 2 cents in the past 30 days.
Luminar made its NASDAQ debut on Dec 3, 2020 upon completion of a merger with a special purpose acquisition company, Gores Metropoulos, Inc. In the last reported quarter, this lidar manufacturer incurred a net loss per share of 10 cents, narrower than the consensus mark of a loss of 12 cents. Over the trailing three quarters, Luminar surpassed the Zacks Consensus Estimate once and matched the mark twice, with the average surprise being 5.6%. 
Things to Note
Luminar’s proprietary software designed to unlock full lidar capabilities enhances automakers’ ability to deliver high-speed highway autonomy at commercial series production scale. This has been helping the company secure business wins, which is expected to have boosted fourth-quarter revenues. The Zacks Consensus Estimate for Luminar’s revenues for the to-be-reported quarter is $12 million, indicating an increase from $8 million in the previous quarter.
In November, Luminar’s lidar solution was selected to be part of the sensor suite in the NVIDIA DRIVE Hyperion autonomous vehicle platform. The buyout of its lidar chip partner OptoGration also strengthened Luminar’s supply chain as it scaled Iris into series production with OEM customers. While the above-mentioned factors are likely to aid fourth-quarter results, cost headwinds are likely to have more than offset the positives, thereby denting the bottom line.
With the company still being in the nascent stage, high technology and product development expenses are likely to have dented margins. In the last reported quarter, Luminar recorded operating expenses of $67.4 million, skyrocketing 252% year over year. With projected fourth-quarter revenues of just $12 million, escalating RD, sales and marketing, and GA expenses are anticipated to have eroded fourth-quarter margins.
What the Zacks Model Says
Our proven Zacks model does not conclusively predict an earnings beat for Luminar 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. That is not the case here.
Earnings ESP: Luminar has an Earnings ESP of -24.14%. This is because the Most Accurate Estimate is pegged at a loss of 18 cents a share, 3 cents wider than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: LAZR currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
What to Expect From Velodyne Lidar
Luminar’s closest peer Velodyne Lidar (VLDR Quick QuoteVLDR - Free Report) is also set to report fourth-quarter 2021 results on Feb 28, after the closing bell. Our model does not conclusively predict an earnings beat for Velodyne. This is because the company doesn’t possess the right combination of a positive ESP and a favorable Zacks Rank.
Velodyne has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter loss is pegged at 17 cents a share, indicating a wider loss from 12 cents incurred in the year-ago period. Over the trailing four quarters, VLDR topped earnings estimates once, missed on two occasions and matched on the other, with the average negative surprise being 5.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Source: Zacks.com

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