Earnings Update: Lantronix, Inc. (NASDAQ:LTRX) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts
Last week, you might have seen that Lantronix, Inc. (NASDAQ:LTRX) released its yearly result to the market. The early response was not positive, with shares down 6.4% to US$5.37 in the past week. Revenues of US$121m were in line with expectations, although statutory losses per share were US$0.10, some 20% smaller than was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Lantronix's six analysts is for revenues of US$138.6m in 2027. This would reflect a notable 15% increase on its revenue over the past 12 months. Earnings are expected to improve, with Lantronix forecast to report a statutory profit of US$0.087 per share. Before this earnings report, the analysts had been forecasting revenues of US$139.4m and earnings per share (EPS) of US$0.07 in 2027. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
View our latest analysis for Lantronix
There's been no major changes to the consensus price target of US$10.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Lantronix at US$12.00 per share, while the most bearish prices it at US$8.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Lantronix's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.2% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Lantronix is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Lantronix following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Lantronix. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lantronix going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Lantronix that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.