Lantronix, Inc. (LTRX) Soars 8.6%: Is Inventory Staying Up?
Lantronix, Inc. (LTRX) shares climbed 8.6% in the last trading session to close at $ 5.93. The movement was supported by solid volume with a lot more action changing hands than in a normal session. This compares to the stock’s 12.5% gain over the past four weeks.
The increase in the share price can be attributed to optimism surrounding the growing influence of the latest connectivity services, which connect Internet of Things (“IoT”) fleets and infrastructure remotely.
The strength of Lantronix’s diverse product portfolio, which includes modules, gateways and consoles, remains a key enabler. The acquisitions of Maestro, Intrinsyc and FALCOM also bode well for Lantronix.
Recently, the company announced its results for the third quarter of fiscal 2021, in which the upper and lower results exceeded Zacks’ consensus estimate by 1.8% and 150% respectively. Year over year, earnings per share and non-GAAP revenue improved 150% and 3.6%, respectively.
Lantronix also announced its intention to acquire Transition Networks and Net2Edge, which is the Electronics and Software business division of Communications Systems at a base price of $ 25 million. The acquisition will add Power over Ethernet (PoE), complementary switching and media conversion technologies to the company’s suite of IoT connectivity solutions.
The transaction, subject to regulatory, customary and shareholder approvals, is expected to close in June or July 2021.
Price and consensus
The company is expected to post quarterly earnings of $ 0.05 per share in its next report, which represents a year-over-year change of + 25%. Revenue is expected to be $ 18.5 million, up 6.3% from the quarter last year.
While earnings and income growth forecasts are important in assessing a stock’s potential strength, empirical research shows a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For Lantronix, Inc., the consensus estimate of EPS for the quarter has remained unchanged over the past 30 days. And the price of a stock usually does not continue to rise in the absence of any trend in revisions to earnings estimates. So be sure to keep an eye out for LTRX going forward to see if that recent leap can turn into more force on the road.
The stock currently carries a rank 3 of Zacks (Hold). You can see the full list of current Zacks Rank # 1 (Strong Buy) stocks here >>>>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.