Lantronix Intrinsic Value – Lantronix Reports Q2 2023 Non-GAAP EPS of $0. 04, Exceeding Expectations by $0. 01
February 10, 2023
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Lantronix Intrinsic Value – Investors of Lantronix ($NASDAQ:LTRX) were pleased this week as the company reported Non-GAAP earnings per share (EPS) of $0.04 for Q2 2023. This number exceeded analyst expectations by $0.01, which was seen as a positive sign for the tech giant. Lantronix is a California-based manufacturer and provider of secure data access, management and control solutions. It specializes in the development of enterprise-level products that help customers manage their operations by accessing, controlling and monitoring connected devices, systems and equipment. The company trades on the NASDAQ as LTRX and boasts a market cap of over $1 billion.
This exceedance of expectation is all the more impressive as it was achieved despite increased expenses driven by investments in marketing, product development, and research and development. The strong performance in Q2 can be attributed to strong demand for the company’s product portfolio, especially in industrial and medical markets. This increased demand allowed Lantronix to reach record levels of gross profit margins for the quarter. As investors consider the company’s future prospects, they will no doubt be encouraged by Lantronix’s impressive performance in Q2 as well as its long track record of success in enterprise-grade solutions. With a strong outlook for the rest of 2023, Lantronix appears to be on a positive trajectory going forward.
Stock Price
This was despite the mostly negative media exposure surrounding the company and its stock at the time of writing. At the time of the report, LANTRONIX‘s stock opened at $5.1 and closed at $5.0 on Thursday, down by 0.4% from its previous closing price of 5.0. This was mainly attributed to the company’s cost-cutting measures and improved efficiency in its operations.
Overall, the second-quarter report from LANTRONIX exceeded expectations and is a positive sign for the company’s future prospects. Investors are now hoping that the company can sustain its improved performance and continue to deliver higher-than-expected figures in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lantronix. More…
| Total Revenues | Net Income | Net Margin |
| 133.75 | -4.73 | -2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lantronix. More…
| Operations | Investing | Financing |
| -13.57 | -7.26 | 23.68 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lantronix. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 150.13 | 70.39 | 2.2 |
Key Ratios Snapshot
Some of the financial key ratios for Lantronix are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 41.4% | – | -3.9% |
| FCF Margin | ROE | ROA |
| -12.4% | -4.1% | -2.2% |
Analysis – Lantronix Intrinsic Value
GoodWhale has conducted a thorough analysis of LANTRONIX‘s wellbeing and calculated that its fair value is around $6.7. This figure was calculated using GoodWhale’s proprietary Valuation Line which takes into account factors like the company’s market position, financials, and long-term outlook. This presents an attractive opportunity for investors to acquire the stock at a discount price. If the company can maintain its current standing and outlook, then it may be possible to turn a profit on this investment. It is important to note that stock prices are subject to fluctuate over time, and should not be treated as a permanent indicator of value. Investors should do their own research into the stock, its industry, and the company itself before investing. More…
Peers
Lantronix‘s solutions enable its customers to remotely and securely connect to, manage, and control virtually any electronic device. Lantronix’s competitors include Identiv Inc, Eutelsat Communications, and ZTE Corp.
– Identiv Inc ($NASDAQ:INVE)
Identiv, Inc. is a global provider of physical security and safe identity solutions. The company offers a wide range of products and services that enable the secure movement of people, assets, and data. Identiv’s solutions are used in a variety of applications, including identity verification, access control, video surveillance, and asset tracking.
Identiv’s market cap is $278.32 million as of 2022. The company’s return on equity is -0.4%.
Identiv provides physical security and safe identity solutions that are used in a variety of applications, including identity verification, access control, video surveillance, and asset tracking. The company’s products and services enable the secure movement of people, assets, and data.
– Eutelsat Communications ($OTCPK:ETCMY)
Eutelsat Communications is a leading satellite operator. The company has a market cap of 2.15B as of 2022 and a Return on Equity of 9.77%. Eutelsat Communications provides satellite communications services to broadcasters, content and internet service providers, mobile and fixed network operators, governments and institutions. The company operates a fleet of over 40 satellites and has a global footprint spanning over 180 countries.
– ZTE Corp ($SZSE:000063)
ZTE Corporation is a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen, Guangdong, China. The company produces mobile phones and telecommunications equipment for customers in over 160 countries. ZTE operates in three business units: carrier networks, terminals, and telecommunication. Carrier networks business unit provides products and services for telecom carriers, including wireless, exchange, access, optical transport, data communications, and software products. Terminals business unit provides mobile phones, mobile broadband devices, home appliances, and vehicle-mounted devices. Telecommunication business unit provides fixed-line broadband, IPTV, and data communications products and services for enterprises and consumers.
As of 2022, ZTE Corporation has a market capitalization of 94.61 billion US dollars. The company’s return on equity (ROE) is 11.4%. ZTE Corporation is a leading telecommunications equipment and systems company with a strong international presence. The company’s products and services are used by customers in over 160 countries. ZTE operates in three main business units: carrier networks, terminals, and telecommunication. ZTE has a strong focus on research and development, and has been awarded over 25,000 patents worldwide.
Summary
Investing in Lantronix could be a promising opportunity. The company recently reported strong Q2 2023 non-GAAP earnings of $0.04, exceeding analysts’ expectations by $0.01. Despite this news, media coverage and investor sentiment has been mostly negative. As such, investors should conduct due diligence to determine if Lantronix is a good fit for their portfolio.
Potential investors should analyze the company’s financials, management team, and competitive landscape to determine if it is a worthwhile investment. Furthermore, investors should monitor future developments in the company and any changes in the media’s opinion of the company to get a better sense of its potential.
