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Lattice (LSCC) to Report Q2 Earnings: What's in the Offing?

Zacks Equity Research

Lattice Semiconductor Corporation LSCC is set to report second-quarter 2019 results on Jul 30.

The company outpaced the Zacks Consensus Estimate in all the trailing four quarters with an average positive earnings surprise of 33.06%.

Past-Quarter Performance

In the last reported quarter, Lattice’s earnings of 11 cents per share delivered a positive earnings surprise of 22.22%. Further, the figure was up 120% from the year-ago quarter and 37.5% cents sequentially.

Net sales surged 2.2% sequentially but declined 0.5% year over year to $98.1 million. Further, the figure outpaced the Zacks Consensus Estimate of $96 million.

Which Way Are Q2 Estimates Treading?

For the second quarter, Lattice anticipates revenues in the range of $98 million to $102 million. The Zacks Consensus Estimate for revenues is pegged at $100 million.

Let’s see how things are shaping up prior to this announcement.

Lattice Semiconductor Corporation Price and EPS Surprise


Lattice Semiconductor Corporation Price and EPS Surprise

Lattice Semiconductor Corporation price-eps-surprise | Lattice Semiconductor Corporation Quote

Factors to Consider

Lattice’s well diversified product portfolio remains a key catalyst, which is likely to aid its end-market performance in the to-be-reported quarter.

The company’s solid momentum across communications and computing market remains a major positive. Lattice continues to gain traction across customers with its early access program for new platform security solution driven by the increasing demand for advanced data center security.

Further, the company is witnessing growing adoption of its products required in server and client computing platforms. All these are likely to aid Lattice in maintaining momentum across server vendors in the to-be-reported quarter.

Additionally, the company continues to benefit from early 5G deployments in the communications markets. Ramping of 5G wireless infrastructure buildout will aid the second-quarter revenues.

The company’s strengthening momentum across industrial automation, robotics and automotive electronics are likely to aid its performance in the industrial and auto markets in the quarter under review.

All these factors are expected to drive the top-line growth of the company in the soon-to-be-reported quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lattcie has a Zacks Rank #1 but an Earnings ESP of 0.00%, which makes the surprise prediction difficult.

Stocks to Consider

Here are a couple of stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.

Clearway Energy CWEN has an Earnings ESP of +15.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AmerisourceBergen Corporation ABC has an Earnings ESP of +0.82% and a Zacks Rank #3.

Ciena CIEN has an Earnings ESP of +5.26% and a Zacks Rank #2.

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Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report
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AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
Clearway Energy, Inc. (CWEN) : Free Stock Analysis Report
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