Shares of Lantronix, a leading provider of Internet-of-Things solutions, took a hit following the company’s revised full-year guidance and lower-than-expected second-quarter results.
Dismal Performance in Q2 and Reduced Revenue Outlook
Lantronix, based in Irvine, California, announced on Thursday that it now anticipates fiscal 2024 revenue between $155 million and $165 million, compared to its previous projection of $175 million to $185 million. This downward adjustment in revenue guidance caused a decline in investor confidence, with shares plummeting by 30% to $4.07 on Friday.
Moreover, the company’s adjusted earnings guidance has also been revised down, from 50 cents to 60 cents per share to a range of 35 cents to 45 cents per share.
Disappointing Financial Results
For the second quarter ended December 31, Lantronix reported a loss of $2.59 million (7 cents per share), slightly worse than its loss of $2.61 million (7 cents per share) in the same period last year. Analysts, on the other hand, had expected the company to only incur a per-share loss of 1 cent.
Though Lantronix managed to achieve an 18% year-on-year increase in revenue, reaching $37 million, this fell short of analyst expectations of $37.6 million.
The overall performance of the company has not met investor or analyst predictions, causing concern among stakeholders.
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