Lantronix, Inc. (LTRX) Tops Q2 Earnings Estimates

Company Performance - Lantronix, Inc. reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.08 per share a year ago, representing an earnings surprise of 33.33% [1] - The company posted revenues of $31.16 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.13%, and down from $37.04 million year-over-year [2] - Over the last four quarters, Lantronix has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the earnings outlook for the coming quarters [3][4] - The current consensus EPS estimate for the next quarter is $0.08 on revenues of $34.9 million, and for the current fiscal year, it is $0.27 on revenues of $137.6 million [7] - The estimate revisions trend for Lantronix is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Computer - Networking industry, to which Lantronix belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]