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Lattice (LSCC) to Report Q4 Earnings: What's in the Cards?

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Lattice Semiconductor Corporation (LSCC - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 11.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive earnings surprise of 15.1%.

Key Projections

The company expects fourth-quarter revenues in the range of $97-$103 million. The Zacks Consensus Estimate for revenues is pegged at $100.1 million, indicating growth of 4.3% from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pegged at $15 cents per share, indicating growth of 87.5% from the year-ago quarter.

Lattice Semiconductor Corporation Price and EPS Surprise

 

Performance in the Last Reported Quarter

In the third quarter, Lattice reported non-GAAP earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate by 13.3%. The figure also improved 54.5% on a year-over-year basis.

Net revenues of 103.5 million outpaced the Zacks Consensus Estimate by 0.5%. Moreover, the figure was up 2% from the year-ago quarter.

Let’s see how things have shaped up prior to this announcement.

Factors to Consider

Lattice’s well-diversified product portfolio is likely to have a positive impact on fourth-quarter results. The company’s new products that include the CrossLinkPlus FPGA family are expected to have to have aided end-market demand in the to-be-reported quarter.

Its solid momentum across the computing and communications market is expected to get reflected on fourth-quarter results.

In computing space, Lattice is likely to have benefited from strong footprint across a number of OEM server platforms. The company’s efforts to increase content in next generation servers by adding security functionality with the new MachXO3D product family are expected to have driven this market.

Advancement of products that are highly utilized in server and client computing platforms is likely to have contributed to the company’s fourth-quarter performance in this particular market.

Lattice devices — which offer support for functions like security, video bridging and IO aggregation in different form factors — are likely to have helped Latticeto gain traction among client computing platforms in the fourth quarter.

In the communication market, ramping of 5G wireless infrastructure buildout is expected to have contributed significantly to the company’s fourth-quarter revenues.

Additionally, Lattice is anticipated to have performed well in the industrial and automotive market during the fourth quarter. Notably, robust industrial and automotive applications are expected to have brought new design wins in the fourth quarter.

All these factors are likely to benefit Lattice’s overall fourth-quarter results.

However, demand softness due to macroeconomic headwinds is likely to have hurt the company’s performance in the consumer market during the fourth quarter. This is anticipated to negatively impact the upcoming results.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Latticethis time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Lattice has a Zacks Rank #2.

Stocks to Consider

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise in the upcoming releases.

Five9, Inc. (FIVN - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2.

Applied Materials, Inc. (AMAT - Free Report) has an Earnings ESP of +2.89% and a Zacks Rank #1.

Applied Optoelectronics, Inc. (AAOI - Free Report) has an Earnings ESP of +8.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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