Lantronix (NASDAQ:LTRX) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

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

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 Trading Up 5.6%

LTRX stock traded up $0.29 on Monday, hitting $5.45. 1,138,525 shares of the company’s stock traded hands, compared to its average volume of 1,004,213. The stock has a market cap of $255.49 million, a price-to-earnings ratio of -49.55 and a beta of 1.36. Lantronix has a 1-year low of $4.40 and a 1-year high of $8.75. The stock has a fifty day moving average of $6.01 and a 200-day moving average of $6.08.

Analyst Ratings Changes

LTRX has been the topic of several research analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Lantronix in a research note on Thursday, October 15th. Lake Street Capital upped their price target 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. Needham & Company LLC reaffirmed a “buy” rating and issued a $11.00 price target on shares of Lantronix in a research note on Thursday, August 27th. JonesTrading started coverage on shares of Lantronix in a report on Wednesday, July 15th. They issued a “buy” rating and a $12.00 price objective for the company. Finally, Wall Street Zen upgraded shares of Lantronix from a “hold” rating to a “buy” rating in a research note on Saturday, August 29th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $10.80.

Insider Activity

In related news, CEO Saleel Awsare bought 15,000 shares of the business’s stock in a transaction dated Wednesday, September 9th. The shares were bought 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 approximately $2,348,513.58. This trade represents a 3.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Corporate 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.