Luminar Technologies Announces Partnership With Mercedes-Benz, Shares Down 10%

Luminar Technologies (NASDAQ:LAZR), known for its advancements in automotive LiDAR sensors and AI software, recently shared key third-quarter updates, highlighting strengthened ties with Volvo Cars and significant strides in production. As a result, the company’s shares surged around 10% in pre-market today.

During the quarter, Luminar’s technology became standard on an additional Volvo model, building on the integration with the Volvo EX90 and demonstrating Volvo’s confidence in Luminar’s scalable safety technology.

In terms of financial performance, Luminar reported second-quarter earnings with a revenue of $16.5 million and projected moderate growth for the third quarter. In an effort to improve its financial structure, the company successfully reduced its debt from $422 million to $274 million, with maturity extended to 2030. Additionally, Luminar raised $100 million in non-dilutive capital and has plans to secure another $100 million to support its path to profitability.

On the corporate front, Luminar is facing the possibility of delisting from Nasdaq and is exploring a reverse stock split as a compliance measure. The company also announced a workforce reduction of around 30% this year, aimed at streamlining operations and reducing costs.

Luminar Technologies (NASDAQ:LAZR), known for its advancements in automotive LiDAR sensors and AI software, recently shared key third-quarter updates, highlighting strengthened ties with Volvo Cars and significant strides in production. As a result, the company’s shares surged around 10% in pre-market today.

During the quarter, Luminar’s technology became standard on an additional Volvo model, building on the integration with the Volvo EX90 and demonstrating Volvo’s confidence in Luminar’s scalable safety technology.

In terms of financial performance, Luminar reported second-quarter earnings with a revenue of $16.5 million and projected moderate growth for the third quarter. In an effort to improve its financial structure, the company successfully reduced its debt from $422 million to $274 million, with maturity extended to 2030. Additionally, Luminar raised $100 million in non-dilutive capital and has plans to secure another $100 million to support its path to profitability.

On the corporate front, Luminar is facing the possibility of delisting from Nasdaq and is exploring a reverse stock split as a compliance measure. The company also announced a workforce reduction of around 30% this year, aimed at streamlining operations and reducing costs.

Luminar Technologies, Inc. (NASDAQ:LAZR) shares rose more than 7% on Tuesday following the company’s reported Q2 results, with revenue of $9.9 million coming in better than the Street estimate of $8.45 million. Q2 EPS was ($0.18), missing the Street estimate of ($0.16).

The company provided its full 2022-year outlook, raising its revenue estimate to $40-45 million (vs. $40 million prior), compared to the Street estimate of $41.35 million.

Management is now expecting to reach over 60% growth in major commercial wins (up from 40% prior and equating to a total of 5+ program wins, suggesting 3+ more to be announced in H2) and grow its forward-looking order book by 60%, (up from 40% prior).

While no particular OEM win was announced in the quarter, analysts at Deutsche Bank believe management must have solid visibility into securing the rest of the wins as those discussions are currently taking place. Furthermore, the 60% order book growth (vs. $2.1 billion at the beginning of the year) will not only come from new OEMs but also from existing OEMs as they expand the adoption of Luminar lidars to other platforms/vehicle models.

Luminar Technologies, Inc. (NASDAQ:LAZR) shares rose more than 7% on Tuesday following the company’s reported Q2 results, with revenue of $9.9 million coming in better than the Street estimate of $8.45 million. Q2 EPS was ($0.18), missing the Street estimate of ($0.16).

The company provided its full 2022-year outlook, raising its revenue estimate to $40-45 million (vs. $40 million prior), compared to the Street estimate of $41.35 million.

Management is now expecting to reach over 60% growth in major commercial wins (up from 40% prior and equating to a total of 5+ program wins, suggesting 3+ more to be announced in H2) and grow its forward-looking order book by 60%, (up from 40% prior).

While no particular OEM win was announced in the quarter, analysts at Deutsche Bank believe management must have solid visibility into securing the rest of the wins as those discussions are currently taking place. Furthermore, the 60% order book growth (vs. $2.1 billion at the beginning of the year) will not only come from new OEMs but also from existing OEMs as they expand the adoption of Luminar lidars to other platforms/vehicle models.

Luminar Technologies, Inc. (NASDAQ:LAZR) made an announcement, according to which it will partner with Mercedes-Benz to develop “future highly automated driving technologies”.

While Luminar classified the announcement as a “major commercial win” and a “landmark moment in the industry”, analysts at Berenberg Bank believe that this is most likely not a high-volume production win that will see Luminar sensors go into Mercedes-Benz cars in the near future.

The analysts think that Luminar needs to announce high-volume series production awards with a firm timeline and tangible volume/revenue expectations in order to justify upside. This announcement, while being viewed as positive, doesn’t give the brokerage details that would inform a meaningful change to estimates. The company’s shares were trading around 10% lower Monday afternoon.