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

Key Points

• Lantronix reported quarterly EPS of $0.05, $0.01 above estimates, and revenue of $32.37 million, also ahead of analyst expectations. Revenue rose 8% year over year to $32.4 million, while non-GAAP net income climbed 50% to $2.2 million.
• For Q2, management forecast revenue of $32.5 million–$34.5 million and non-GAAP EPS of $0.04–$0.06, reaffirming its expectation for full-year double-digit revenue growth. Embedded IoT revenue grew 37%, and software and services now exceed 10% of pro forma revenue following the Nero acquisition.
• Management cited headwinds from reduced contributions by a tier-1 mobile operator customer and industry-wide memory constraints and pricing pressure. It expects gross margins to remain near recent mid-40% levels.

Lantronix (NASDAQ:LTRX - Get Free Report) posted its quarterly earnings results on Monday. The technology company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.04 by $0.01, FiscalAI reports. Lantronix had a negative net margin of 3.46% and a negative return on equity of 4.88%. The business had revenue of $32.37 million during the quarter, compared to analyst estimates of $31.98 million.

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 traded up $0.29 during trading hours on Monday, hitting $5.45. The stock had a trading volume of 1,138,525 shares, compared to its average volume of 1,004,213. The stock's fifty day simple moving average is $6.01 and its 200 day simple moving average is $6.08. Lantronix has a 1-year low of $4.40 and a 1-year high of $8.75. The firm has a market capitalization of $255.49 million, a price-to-earnings ratio of -49.55 and a beta of 1.36.

Analyst Upgrades and Downgrades

LTRX has been the topic of a number of recent research reports. Needham & Company LLC reissued a "buy" rating and issued a $11.00 target price on shares of Lantronix in a report on Thursday, August 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lantronix in a report on Thursday, October 15th. Wall Street Zen raised Lantronix from a "hold" rating to a "buy" rating in a report on Saturday, August 29th. Lake Street Capital increased their price target 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 issued a "buy" rating and a $12.00 price target on the stock. Six research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $10.80.

Insider Buying and Selling at Lantronix

In other Lantronix news, CEO Saleel Awsare acquired 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, for a total transaction of $77,700.00. Following the completion of the transaction, the chief executive officer owned 453,381 shares in the company, valued at approximately $2,348,513.58. This represents a 3.42% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 2.80% of the company's stock.

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.

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