LightPath Technologies (NASDAQ:LPTH) brought in sales totaling $9.24 million during Q2 according to data provided by Benzinga Pro. However, earnings decreased 66.95%, resulting in a loss of $1.06 million. LightPath Technologies collected $9.10 million in revenue during Q1, but reported earnings showed a $632.10 thousand loss.
What Is ROIC?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q2, LightPath Technologies posted an ROIC of -1.07%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q2, LightPath Technologies posted an ROIC of -1.07%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
For LightPath Technologies, a negative ROIC ratio of -1.07% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.
Upcoming Earnings Estimate
LightPath Technologies reported Q2 earnings per share at $-0.04/share, which did not meet analyst predictions of $-0.01/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
