Lantronix Inc. Receives Buy Rating Upgrade from Lake Street

Lantronix Inc. (LTRX:NASDAQ) Receives Upgrade from Lake Street

On April 30, 2024, Lake Street upgraded its rating for Lantronix Inc. (LTRX:NASDAQ) to Buy, while adjusting its price target to $7 from the previous $8, as reported by TheFly. This decision came in the wake of Lantronix's impressive third-quarter financial performance for the fiscal year 2024, which was discussed in detail during their earnings conference call on April 29, 2024. The call, covered by Seeking Alpha, featured key company figures including CFO Jeremy Whitaker and CEO Saleel Awsare, alongside analysts from notable firms such as Lake Street and Canaccord Genuity. The discussion focused on the company's financial achievements, including a notable earnings surprise and revenue growth.

Lantronix reported quarterly earnings of $0.11 per share, surpassing the Zacks Consensus Estimate of $0.09 per share and marking a significant improvement from the previous year's earnings of $0.06 per share. This 22.22% earnings surprise is part of a consistent trend, with the company beating consensus EPS estimates in three of the last four quarters. Additionally, Lantronix posted revenues of $41.18 million for the quarter, exceeding expectations by 0.94% and representing a substantial increase from the year-ago revenues of $32.96 million. This performance indicates a strong financial health and operational efficiency within the competitive Zacks Computer - Networking industry.

The company's financial success is further highlighted by its record net revenue of $41.2 million for the third quarter, an 11 percent sequential increase and a 25 percent growth year-over-year. This achievement underscores Lantronix's solid market position and the growing demand for its IoT solutions. On a GAAP basis, the EPS improved to ($0.01) from ($0.08) in the previous year, showing a reduction in losses, while the non-GAAP EPS rose to $0.11 from $0.06, reflecting solid profitability.

Looking forward, Lantronix provided an optimistic business outlook for the fourth fiscal quarter of 2024, expecting revenue to be in the range of $46.5 million to $51.5 million, with non-GAAP EPS projected to be between $0.12 and $0.18 per share. This guidance suggests continued growth momentum and confidence in the company's strategic direction. Lantronix's management plans to host an investor conference call and audio webcast to discuss these results and offer more insights into the company's performance and future plans, providing stakeholders an opportunity to engage directly with the company's leadership.

The positive adjustment in Lantronix's stock rating by Lake Street, coupled with the company's strong financial performance and optimistic future outlook, reflects a growing confidence in Lantronix's market position and its potential for continued success in the IoT solutions sector. With a record revenue and improved earnings for the third quarter of fiscal 2024, Lantronix appears well-positioned for sustained growth and operational efficiency, making it an attractive option for investors.