Lattice Semiconductor outpaces Wall Street estimates in Q4 2019


On Tuesday, Lattice Semiconductor, a leading manufacturer of programmable logic devices for the automotive, industrial, and consumer sectors, posted its fourth-quarter financial results. Notably, the firm exceeded analyst expectations on both revenue and earnings per share. The corporation offered a forecast for its Q1 2020 results, indicating that its sales won’t slow down in the near-term.

Lattice’s Q4 2019 Earnings

In the period ending December 2019, Lattice generated $100.23 million in revenue. As such, the component maker outpaced Wall Street estimates and improved its sales by 4.4 percent year-over-year. The firm also significantly increased its profits from the same timeframe the year previous. The company made $22.87 million in net income, up 105.7 percent from its earnings in Q4 2018.

Lattice also increased its income by meaningfully improving its profit margins. In the fourth quarter of 2018, the firm had a gross margin percentage of 56.7. Conversely, the manufacturer had a gross margin of 59.6 percent, up 2.9 percent annually.

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Like many semiconductor corporations, Lattice has benefited from the industry’s recovery, which began late last year.

The component company also significantly improved its earnings per share (EPS) last quarter. In the period ending December 2019, the corporation recorded EPS of $.17, a year-over-year improvement of 88.88 percent. In addition, the firm beat Zacks Investment Research forecast of $.15 EPS by 13.33 percent. Accordingly, the programmable logic device producer has outpaced Zacks estimates for the last four quarters.

Lattice’s Bright Future

In addition to touting its significant year-over-year gains, Lattice also offered optimistic guidance for its financial performance this quarter. The company provided a revenue estimate of $96 million to $104 million for the first quarter of 2020. The company also predicted that it would record a gross margin percentage of 59.5 percent in the current period, plus or minus 1 percent.

Conversely, Zacks forecasts Lattice’s Q1 2020 revenues will total $99.80 million. However, the component maker’s recent offerings suggest it will beat Wall Street’s estimates for a fifth consecutive quarter.

For instance, in December, Lattice introduced a new field-programmable gate array (FPGA) platform called Nexus. The line features chip architecture that optimizes system performance using low-power edge processing. Moreover, the series of components has improved display signal processing and greater on-chip memory.

As such, Lattice’s Nexus FPGAs are ideal for use in image processing, sensor bridging and aggregation, and embedded vision systems. In its earnings report, the company also highlighted the market appeal of its other hardware and software stacks as profit drivers. Therefore, the Portland, Oregon-based manufacturer should have no problem hitting its first-quarter financial targets.


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