Lantronix (NASDAQ:LTRX) Announces Quarterly Earnings Results

Lantronix (NASDAQ:LTRX) released its earnings results on Monday. The technology company reported $0.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.04 by $0.01, FiscalAI reports. Lantronix had a negative net margin of 2.63% and a negative return on equity of 3.63%. The company had revenue of $32.37 million during the quarter, compared to the consensus estimate 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 Up 6.2%

NASDAQ:LTRX opened at $4.66 on Wednesday. Lantronix has a twelve month low of $4.36 and a twelve month high of $8.75. The firm has a market capitalization of $218.46 million, a P/E ratio of -58.25 and a beta of 1.36. The company has a fifty day moving average of $6.00 and a 200-day moving average of $6.06.

Analyst Ratings Changes

LTRX has been the topic of a number of research analyst reports. Needham & Company LLC restated a “buy” rating and issued a $11.00 price target on shares of Lantronix in a research note on Thursday, August 27th. Lake Street Capital raised their target price on shares of Lantronix from $8.00 to $10.00 and gave the stock a “buy” rating in a research note on Friday, September 18th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lantronix in a report on Thursday, October 15th. JonesTrading began coverage on shares of Lantronix in a research note on Wednesday, July 15th. They issued a “buy” rating and a $12.00 price target on the stock. Finally, Zacks Research lowered shares of Lantronix from a “hold” rating to a “strong sell” rating in a research note on Monday. Six investment analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $10.80.

Insider Buying and Selling

In related news, CEO Saleel Awsare acquired 15,000 shares of the company’s stock in a transaction on Wednesday, September 9th. The shares were acquired at an average cost of $5.18 per share, for a total transaction of $77,700.00. Following the purchase, the chief executive officer owned 453,381 shares in the company, valued at approximately $2,348,513.58. The trade was a 3.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 2.80% of the company’s stock.

About Lantronix

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.