nLIGHT Gears Up to Report Q3 Earnings: What's in Store for the Stock?

Core Insights - nLIGHT, Inc. (LASR) is set to report its third-quarter 2025 earnings on November 6, with anticipated revenues between $62 million and $67 million, reflecting an 11.3% increase from $56.1 million in the same quarter last year [1][8] - The consensus estimate for earnings is 2 cents per share, a significant improvement from a loss of 8 cents per share in the previous year [2][8] - The company has shown a mixed performance in the past four quarters, surpassing earnings estimates twice, matching once, and missing once, with an average surprise of 50.4% [2] Revenue Drivers - nLIGHT's focus on high-power semiconductor and fiber lasers is expected to benefit from strong demand in the aerospace and defense (A&D) markets, which accounted for 66% of total sales in the second quarter of 2025, up from 54% year-over-year [3][4] - The A&D segment achieved record revenues of $40.7 million in the second quarter, marking a 49% year-over-year increase [3] - Key areas driving A&D revenues include directed energy systems, missile defense, and laser sensing, which align with long-term funding priorities of the Department of Defense [4][5] Market Challenges - Despite the strong performance in the A&D sector, sluggish demand in the industrial end market is expected to negatively impact overall performance in the upcoming quarter [6] - The favorable business mix towards defense products is anticipated to enhance margins, supported by higher factory absorption and improved manufacturing execution [6] Earnings Prediction Model - The Zacks model indicates that nLIGHT does not conclusively predict an earnings beat this season, as it has a Zacks Rank of 2 but an Earnings ESP of 0.00% [7]