These Analysts Cut Their Forecasts On Lantronix Following Q3 Results

Core Viewpoint - Lantronix, Inc. reported in-line earnings for Q3, with earnings of 3 cents per share meeting analyst expectations, but sales of $28.50 million fell short of the consensus estimate of $29.12 million [1][2]. Financial Performance - Quarterly earnings were reported at 3 cents per share, aligning with analyst consensus [1]. - Quarterly sales amounted to $28.50 million, which was below the expected $29.12 million [1]. - For Q4, the company anticipates adjusted EPS between $0.00 and $0.02, compared to market estimates of $0.05, and expects sales in the range of $26.50 million to $30.58 million, against expectations of $30.13 million [2]. Market Reaction - Following the earnings announcement, Lantronix shares decreased by 1.4%, trading at $2.07 [3]. - Analysts adjusted their price targets for Lantronix, with Needham maintaining a Buy rating but lowering the target from $5.5 to $4.5, and Canaccord Genuity also maintaining a Buy rating while reducing the target from $4.5 to $3 [8]. Strategic Positioning - The CEO of Lantronix emphasized the company's focus on leading industrial and enterprise transformation at the edge, highlighting investments in high-growth areas such as AI-enabled gateways and 5G connectivity [2].