Orion's (OESX) Q4 Loss Narrower Than Expected, Gross Margin Up

Core Insights - The company reported significant year-over-year growth in its LED Lighting, EV Charging, and Maintenance segments, with revenues increasing by 13.1%, 42.1%, and 37.4% to $16.3 million, $4.9 million, and $5.2 million, respectively [1] - The Zacks Consensus Estimate for Dycom Industries, Inc. (DY) indicates improvements in fiscal 2024 sales and EPS of 9.3% and 5.6%, respectively, compared to the previous year [3] - Orion Energy Systems, Inc. (OESX) experienced a notable gross profit increase of 43.5% to $6.8 million in the fiscal fourth quarter, driven by a favorable sales mix and improved pricing [4] - Total revenues for OESX increased by 17.1% year over year to $90.6 million, with a reduced net loss of 36 cents per share compared to a loss of $1.08 per share a year ago [5] - OESX's total revenues of $26.4 million in the fourth quarter missed the consensus estimate but still represented a 22.1% increase from the prior year [15] - The company expects total revenues for fiscal 2025 to grow by 10-15% year over year, supported by growth in LED lighting and EV charging solutions [22] Financial Performance - OESX's adjusted EBITDA improved to $0.4 million from a loss of $1.6 million in the previous year [19] - The gross margin for OESX was reported at 23.1%, up 50 basis points from the previous year [20] - Operating expenses for OESX decreased significantly to $5.0 million from $9.6 million reported a year ago [16] - At the end of fiscal 2024, OESX had cash and cash equivalents of $5.2 million, down from $16 million at the end of fiscal 2023, with total liquidity at $15.3 million [21] Market Outlook - The improving business momentum for OESX is expected to continue into fiscal 2025, driven by macroeconomic trends favoring LED lighting and EV charging segments [13] - The Maintenance segment's revenues are projected to contract by $4-$5 million in fiscal 2025 [17]