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Market Overview

Lantronix's Earnings: A Preview


On Thursday, November 12, Lantronix (NASDAQ: LTRX) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Lantronix will report earnings of $0.05 per share on revenue of $17.53 million. In the same quarter last year, Lantronix posted EPS of $0.0 on sales of $12.74 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 0%. Sales would be have grown 37.59% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019
EPS Estimate 0.03 0 0.04 -0.01
EPS Actual 0.04 0.02 0.03 0
Revenue Estimate 17.20 M 16.10 M 13.00 M 12.50 M
Revenue Actual 17.40 M 16.51 M 13.23 M 12.74 M

Stock Performance

Shares of Lantronix were trading at $4.74 as of November 10. Over the last 52-week period, shares are up 50.76%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lantronix is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: Earnings