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Vuzix Posts Smaller-Than-Feared Quarterly Loss, Sales Pop 117%

Vuzix Corp. reported a better-than-expected loss in the fourth quarter. Moreover, sales surged 117% year-over-year, driven by a rise in smart glasses products and engineering services revenue. However, shares of the eyewear company declined 1.6% in Monday’s extended trading session after closing slightly higher on the day.

Vuzix (VUZI) incurred a loss of $0.09 per share in 4Q, compared to the $0.11 loss per share estimated by analysts. A loss of $0.31 per share was reported in the same quarter last year. Total sales generated in the quarter amounted to $4.23 million, versus the consensus estimate of $4.01 million.

The company’s research and development expenses were $1.9 million in the quarter, down 9.5% year-over-year. Total general and administrative expenses stood at $1.9 million, up 35.7%. (See Vuzix stock analysis on TipRanks)

Vuzix CEO Paul Travers said, “We are well-positioned to achieve significant year-over-year comparative revenue growth in our first quarter and throughout 2021, thanks to the growing success of our M-Series and Vuzix Blade Smart Glasses across key market verticals that include healthcare, field service, manufacturing and warehouse and logistics, as well as expected contributions from our OEM business group.”

On Feb. 16, BTIG analyst Matthew VanVliet initiated coverage of the stock with a Buy rating and a price target of $30 (35% upside potential).

VanVliet said, “The future is here for the broad adoption of AR smart glasses across the enterprise landscape, adding that the advancements in mobile technology and the continuing investments in edge-computing and 5G networks have finally enabled the wearable technology to potentially displace the current smartphone as the primary device.”

The analyst believes “Vuzix is at the leading edge of the industry with its market-leading performance, IP portfolio, and best-in-class waveguide capabilities.”

Vuzix shares have exploded 162% so far this year, while the stock still scores a Strong Buy consensus rating based on 3 unanimous Buys. That’s alongside an average analyst price target of $18.33, which implies 17.5% downside potential to current levels.

On top of this, Vuzix scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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