Back to top

Image: Bigstock

Lantronix Gears Up to Report Q4 Earnings: What's in the Offing?

Read MoreHide Full Article

Lantronix, Inc. (LTRX - Free Report) is slated to report fourth-quarter fiscal 2024 results on Sept. 5, after the closing bell.

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $49.1 million, which suggests an increase of 40.6% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at 15 cents, indicating a year-over-year rise of 150%.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching once. It has a trailing four-quarter earnings surprise of 160.6%, on average.

For the fourth quarter of fiscal 2024, LTRX projects revenues in the $46.5-$51.5 million band. Non-GAAP EPS is expected in the range of 12 cents to 18 cents. Management reiterated its fiscal 2024 guidance. It expects to deliver a 22% organic revenue growth and 74% growth in non-GAAP EPS, year over year, at the mid-point of fourth-quarter fiscal 2024 guidance.

Lantronix, Inc. Price and EPS Surprise

Lantronix, Inc. Price and EPS Surprise

Lantronix, Inc. price-eps-surprise | Lantronix, Inc. Quote

Key Factors Driving LTRX’s Q4 Performance

Lantronix’s performance in the fiscal fourth quarter is likely to have been driven by increasing demand for its advanced compute solutions. The company continues to invest heavily in its core sectors, focusing on critical infrastructure and smart grid for Smart Cities, advanced infotainment systems for the Automotive industry and robust video surveillance solutions for the Enterprise business. Management expects to witness continued momentum in the IoT Systems solutions for the remaining quarters of fiscal 2024.

In addition, Lantronix’s continued focus on innovative product developments and deal-win strategies is cushioning its top-line growth. In June 2024, it unveiled a cutting-edge 1U rack mountable EDS5000 series of device servers, which supports 8, 16, or 32 serial-managed devices over Ethernet. The device facilitates remote access and handling of any serial-based equipment, including medical devices, POS terminals or security equipment. 

During the same month, a major telecom customer adopted LTRX’s FOX Telematics device and Percepxion SaaS solution for monitoring and managing cell site power generators. Lantronix further aims to augment the solutions' reach to construction sites, hospitals and other similar places.

However, weakness in software and services revenues, uncertain global macroeconomic backdrop and stiff rivalry in the IoT market are likely to have weighed on its performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for LTRX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.

LTRX has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

FedEx Corporation (FDX - Free Report) has an Earnings ESP of +1.56% and currently carries a Zacks Rank #3. FDX is scheduled to report quarterly earnings on Sept., 19. The Zacks Consensus Estimate for FDX’s to-be-reported quarter’s earnings and revenues is pegged at $4.92 per share and $22.2 billion, respectively. Shares of FDX have risen 14.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Genesco (GCO - Free Report) has an Earnings ESP of +3.14% and currently sports a Zacks Rank #1. GCO is scheduled to report quarterly earnings on Sept., 6. The Zacks Consensus Estimate for GCO’s to-be-reported quarter’s loss and revenues is pegged at $1.12 per share and $512.2 million, respectively. Shares of GCO have gained 0.3% in the past year. 

Toro (TTC - Free Report) has an Earnings ESP of +1.02% and currently carries a Zacks Rank #3. TTC is scheduled to report quarterly earnings on Sept., 5. The Zacks Consensus Estimate for TTC’s to-be-reported quarter’s earnings and revenues is pegged at $1.23 per share and $1.26 billion, respectively. Shares of TTC have declined 8.2% in the past year. 

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in