Luminar Technologies' stock surged 32% after earnings report

Luminar Technologies saw a significant increase in its stock price on Friday, rising by 32%. This surge followed the company's release of its fourth-quarter and full-year financial results for 2024. The increase was notable, especially in comparison to the S&P 500, which saw only a slight gain. In the fourth quarter, Luminar earned $22.5 million in revenue, a 2% increase from the same period in 2023. The company also reported a reduced adjusted net loss of just under $50 million, or $1.42 per share. This was better than the nearly $79 million loss reported a year earlier. Interestingly, Luminar achieved a gross profit of approximately $12.5 million, a positive turn from a loss of over $14 million in the last quarter of 2023. Although Luminar did not meet the analyst expectations for adjusted net loss, it exceeded revenue forecasts significantly. Analysts had expected around $17.8 million in revenue and a gross loss of about $12 million. The company also announced a partnership with Volvo, confirming that its technology would be used in the new ES90 car model, which is set to begin production later this year. Looking ahead, Luminar has projected revenue growth of 10% to 20% for 2025, compared to the $75.4 million total in 2024. However, the company anticipates a gross loss of $5 million to $10 million in each quarter of the upcoming year. Overall, investors are optimistic about Luminar's path to profitability, especially with the endorsement from a major automaker like Volvo.