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A Preview Of Lantronix's Earnings

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Lantronix (NASDAQ:LTRX) unveils its next round of earnings this Thursday, February 11. Get prepared with Benzinga's ultimate preview for Lantronix's Q2 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Lantronix management projections, analysts predict EPS of $0.05 on revenue of $17.27 million. Lantronix earnings in the same period a year ago was $0.03 per share. Quarterly sales came in at $13.23 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

The Wall Street estimate would represent a 66.67% increase in the company's earnings. Sales would be up 30.56% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.05 0.03 0 0.04
EPS Actual 0.05 0.04 0.02 0.03
Revenue Estimate 17.53 M 17.20 M 16.10 M 13.00 M
Revenue Actual 17.15 M 17.40 M 16.51 M 13.23 M

Stock Performance

Shares of Lantronix were trading at $5.02 as of February 09. Over the last 52-week period, shares are up 46.32%. 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: BZI-EPEarnings