Why Luminar Technologies Stock Zoomed 32% Higher Today

Next-generation auto sensor specialist Luminar Technologies (NASDAQ: LAZR) was a pacesetter on the stock exchange as the trading week came to a close on Friday. Investors couldn't get enough of the company following the release of its latest set of financials, to the point where the share price closed up a whopping 32% on the day. This compared very favorably to the S&P 500's (SNPINDEX: ^GSPC) marginal rise.

Laser focused

Luminar, which concentrates on visualization products built around laser-based LiDAR technology, reported its fourth-quarter and full-year 2024 results after market close Thursday.

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For the former period, Luminar booked $22.5 million in revenue, a figure that was 2% higher than that of the same quarter of 2023. It also managed to narrow its non-GAAP (generally accepted accounting principles) adjusted net loss; this came in at just under $50 million ($1.42 per share), against the year-ago deficit of nearly $79 million.

Gross profit, however, flipped surprisingly into profitability at almost $12.5 million versus the more than $14 million loss of fourth quarter 2023.

While Luminar missed on the consensus analyst estimate for adjusted net loss ($0.14 per share), it beat convincingly on revenue, as those pundits were collectively modeling just under $17.8 million. Similarly, they had forecast a gross loss of roughly $12 million.

The final months of 2024 saw Luminar announce that its technology was implemented in a car model from a major manufacturer, specifically the ES90 from Volvo. Production of the car should begin later this year.

Top-line growth on tap

Luminar also proffered guidance for the entirety of 2025. The company believes its revenue growth will be 10% to 20% over the 2024 figure ($75.4 million), while it should revert to a gross loss ranging from $5 million to $10 million in each of the four quarters. The company did not provide a bottom-line estimate.

Investors were certainly impressed by the trailing gross profit, and are clearly willing to be patient with the company as it drives toward profitability. The Volvo arrangement is an important stamp of approval for LiDAR technology, and portends a better future for Luminar.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.