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Lattice (LSCC) to Report Q1 Earnings: What's in the Offing?

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Lattice Semiconductor (LSCC - Free Report) is scheduled to report first-quarter 2023 results on May 1.

For the first quarter, LSCC expects revenues between $175 million and $185 million. The Zacks Consensus Estimate for sales is pegged at $179.93 million, indicating growth of 19.5% from the year-ago quarter’s reported value.

The consensus mark for earnings per share is pegged at 50 cents, indicating a 35.1% rise from the previous-year quarter’s reported figure. The consensus mark has been unchanged over the past 30 days.

Lattice Semiconductor’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 7.07%.

Key Factors to Note

Strong customer momentum on the back of a robust product portfolio is likely to have benefited Lattice Semiconductor’s performance in the first quarter.

Increasing investment in the software portfolio to accelerate the customer adoption of Lattice Semiconductor’s products is likely to have benefited its performance in the to-be-reported-quarter.

Content expansion and data center servers, 5G wireless infrastructure and data center networking are expected to have been major growth drivers for Lattice Semiconductor in the communications and computing market. Additionally, growing greenfield client computing design wins might have been a positive.

Further, growing momentum across multiple applications such as industrial, automation and robotics, ADAS and infotainment systems is expected to have bolstered the company’s presence in the industrial and automotive markets during the quarter under review.

The growing adoption of the Nexus platform across all market segments and strong customer engagement on the Avant platform are expected to have remained a tailwind in the quarter under discussion.

The introduction of the Lattice Avant mid-range FPGA platform, which doubles the addressable market of the company, is likely to impact the upcoming quarterly results positively.

However, softness in the consumer electronics end market due to challenging macroeconomic conditions and mounting expenses are expected to have hurt LSCC’s profitability in the quarter under review.

Further, global supply challenges might have been concerns for the company.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for LSCC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But, that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lattice Semiconductor has an Earnings ESP of 0.00% and a Zacks Rank #2 at present.

Stocks to Consider

Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season.

DigitalOcean (DOCN - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter.

BILL Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.

BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.

Ceridian HCM (CDAY - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.

CDAY is scheduled to report first-quarter 2023 results on May 3. The Zacks Consensus Estimate for CDAY’s earnings is pegged at 33 cents per share, suggesting an increase of 153.8% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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