Self-driving sensor maker Luminar falls as production delay at Volvo hits earnings

Luminar Technologies

28/02/2024 17:20

Feb 28 (Reuters) - Luminar Technologies  LAZR.O  shares
tumbled about 10% on Wednesday after the self-driving sensor
maker's fourth-quarter results missed estimates on delayed
production schedule for Volvo Cars'  VOLCARb.ST  new EX90
electric SUVs. 
    The company had shifted its manufacturing and engineering
resources to prepare for the start of production for the cars 
moved to 2024 from the originally scheduled 2023-end, weighing
on sales of its sensors.
    "The EX90 production delay is likely to last until mid-2024.
Volvo is targeting customer deliveries of the EX90 in late
2024," said Jaime Perez, analyst at R.F. Lafferty Equity
Research. 
    Luminar reported revenue of $22.1 million in the fourth
quarter, missing estimates of $27.34 million, according to LSEG
data. Adjusted loss per share of 20 cents also fell just short
of expectations. 
    "Commercial progress has been slower than we expected, but
certainly not only at Luminar but within the auto-tech
ecosystem," TD Cowen said.  
    Adoption of electric vehicles have slowed while analysts
have said that Advance Driver-Assistance Systems face a "largely
negative sentiment" due to autonomous program delays and
cancellations.
    Mobileye Global  MBLY.O , which provides technology for ADAS
and fully autonomous vehicles, said last month that inventory
build-up at its customers will impact growth in 2024. 
    Luminar's shares were down 10.4% at $2.24 on Wednesday. The
stock had lost nearly a third of its value last year.
    

 (Reporting by Harshita Mary Varghese; Editing by Sriraj
Kalluvila)
 ((HarshitaMary.Varghese@thomsonreuters.com;))