Lantronix Shares Fall as Company Cuts Full-Year Guidance and Misses Estimates
Shares of Lantronix, a California-based company that provides Internet-of-Things solutions, plummeted after the company announced a significant reduction in its full-year guidance and reported second-quarter results that fell short of expectations. The stock experienced a steep decline of 30%, closing at $4.07 on Friday. Overall, Lantronix’s shares have fallen by approximately 31% since the beginning of the year.
Revised Revenue Expectations for Fiscal Year 2024
Lantronix revealed on Thursday evening that it now anticipates revenue for fiscal year 2024 to be in the range of $155 million to $165 million. This projection represents a decrease from the company’s previous guidance of $175 million to $185 million. Analysts polled by FactSet had expected full-year revenue to reach $163.7 million.
Adjusted Earnings Guidance Lowered
In addition to revising its revenue expectations, Lantronix also lowered its adjusted earnings guidance. The company now expects adjusted earnings to be between 35 cents and 45 cents per share, down from its previous forecast of 50 cents to 60 cents per share.
Disappointing Second-Quarter Results
Lantronix reported a second-quarter loss of $2.59 million, or 7 cents per share, for the period ended December 31. This result reflects a marginal improvement from the loss of $2.61 million, or 7 cents per share, reported during the same period the previous year. However, it missed analysts’ expectations, as they had predicted a per-share loss of 1 cent.
Revenue Growth Falls Short
Despite an 18% increase in revenue from the previous year, with second-quarter revenue reaching $37 million, Lantronix’s results still failed to meet the forecast of $37.6 million set by analysts.
Key Takeaways: The disappointing news has had a significant impact on the stock price of Lantronix. Investors are concerned about the company’s lower revenue expectations for fiscal year 2024 and the downward revision of its adjusted earnings guidance. As a result, Lantronix’s shares experienced a substantial decline of 30%, leaving the stock at $4.07. The company will need to take measures to address these issues and regain investor confidence in order to stabilize and improve its financial performance going forward.
Analyst comment
Negative news
As an analyst, the market is expected to react negatively to the news. Lantronix’s shares have already experienced a steep decline of 30%, and the company’s lower revenue expectations and adjusted earnings guidance are concerning for investors. Lantronix will need to take corrective measures to regain investor confidence and stabilize its financial performance.
