Lantronix (NASDAQ:LTRX) Posts Earnings Results, Beats Estimates By $0.01 EPS

Lantronix (NASDAQ:LTRX) issued its quarterly earnings results on Monday. The technology company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.01, FiscalAI reports. The company had revenue of $32.37 million for the quarter, compared to analysts’ expectations of $31.98 million. Lantronix had a negative return on equity of 4.88% and a negative net margin of 3.46%.

Here are the key takeaways from Lantronix’s conference call:

• Fiscal Q1 revenue rose 8% year over year to $32.4 million, while non-GAAP net income increased 50% to $2.2 million. For Q2, Lantronix expects revenue of $32.5 million–$34.5 million and non-GAAP EPS of $0.04–$0.06; management reiterated its expectation for double-digit revenue growth for the full year.
• Embedded IoT solutions revenue grew 37%, with unmanned systems contributing 15%–20% of Q1 revenue; management expects that share to continue for the year. The company said it had orders from 29 customers for fiscal 2027, including 14 international customers, though shipments depend on customer program schedules.
• Lantronix highlighted new computer-vision design wins, including Trimble and a job-site security provider, and said its Spotter platform could broaden its opportunities in autonomous systems. The Nero acquisition also lifted software and services to more than 10% of pro forma revenue, adding a recurring-revenue component.
• Management said shipments to its tier-1 mobile network operator customer were largely completed several quarters ago, so that business is not expected to match its prior-year contribution in fiscal 2027. It also cited industry-wide pressure on memory availability and pricing, although it expects company-wide gross margins to remain around recent mid-40% levels.

Lantronix Stock Performance

Shares of NASDAQ LTRX opened at $5.45 on Tuesday. Lantronix has a one year low of $4.40 and a one year high of $8.75. The business has a 50-day moving average price of $6.01 and a two-hundred day moving average price of $6.07.

Key Stories Impacting Lantronix

Here are the key news stories impacting Lantronix this week:

• Positive Sentiment: Revenue increased 8.6% year over year to $32.4 million, slightly above the $32.0 million analyst estimate. Adjusted earnings of $0.05 per share topped the $0.04 consensus. Zacks earnings report
• Positive Sentiment: Embedded IoT Solutions revenue grew 37% year over year, offering investors evidence of strong growth in a key business area. The Motley Fool article
• Negative Sentiment: Profitability and cash generation were weak: Lantronix reported a $558,000 operating loss, a $463,000 net loss, and negative operating cash flow of $2.5 million. The company ended the quarter with $37.6 million in cash. Quiver Quantitative earnings summary

Analyst Upgrades and Downgrades

Several brokerages have commented on LTRX. Wall Street Zen upgraded shares of Lantronix from a “hold” rating to a “buy” rating in a research report on Saturday, August 29th. Weiss Ratings reissued a “sell (d-)” rating on shares of Lantronix in a research note on Thursday, October 15th. Needham & Company LLC restated a “buy” rating and issued a $11.00 target price on shares of Lantronix in a report on Thursday, August 27th. Lake Street Capital boosted their target price on Lantronix from $8.00 to $10.00 and gave the stock a “buy” rating in a research report on Friday, September 18th. Finally, JonesTrading started coverage on Lantronix in a report on Wednesday, July 15th. They set a “buy” rating and a $12.00 target price for the company. Six analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $10.80.

Insider Buying and Selling at Lantronix

In related news, CEO Saleel Awsare purchased 15,000 shares of Lantronix stock in a transaction dated Wednesday, September 9th. The stock was acquired at an average cost of $5.18 per share, with a total value of $77,700.00. Following the completion of the transaction, the chief executive officer directly owned 453,381 shares of the company’s stock, valued at $2,348,513.58. This trade represents a 3.42% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.80% of the stock is owned by corporate insiders.

Lantronix Company Profile

Lantronix, Inc (NASDAQ: LTRX) is a provider of Internet of Things (IoT) and edge-computing solutions that help organizations connect, manage, and secure devices and equipment. The company serves customers in industrial, enterprise, transportation, healthcare, smart-city, and other applications where reliable remote connectivity and device management are required.

Its portfolio includes embedded networking modules, industrial and cellular gateways, routers, out-of-band management products, and software for remotely provisioning, monitoring, and managing connected devices.