by Ian Harvey
August 18, 2019
Lattice Semiconductor stock keeps climbing – up over 260% this year – due largely to its top- and bottom-line growth. The stock, which has been in a beautiful rising channel since last November, is now at the highest closing level in 18 years. The company’s expected earnings growth rate for the current year is 72.7%, against the Electronics - Semiconductors industry’s estimated decline of 4.1%.
And, “Mentorship Program” Members Are Up 313% Potential Profit!
A NICE POTENTIAL PROFIT !
Where is the stock headed now? Is it too late to gain from this climb up? And what will Stock Options Made Easy recommend for members to do?
Stock Options Made Easy recommended that“Mentorship Program” members buy an options call trade back on July 30, 2019, and the price of the options trade has increased 313% since then.
This recommendation on Hillsboro, OR-based, Lattice Semiconductor (NASDAQ: LSCC) came about because the share price had climbed 110.8% in the first half of 2019. Despite modest growth on the top line, the company had been reducing costs, including paying down debt, to boost profitability. Lattice Semiconductor was back to focusing on its core technology - field programmable gate arrays (FPGAs). These are semiconductors that have become very popular products for a variety of industries.
At the same time, management was shifting resources to focus on higher-growth opportunities in 5G wireless, servers, industrial and automotive applications, and the Internet of Things.
These efforts have been paying off, with adjusted (non-GAAP) earnings per share more than doubling in the first quarter year over year, following a 200% jump in 2018.
The stock is experiencing exploding profitability for the company right now. Lattice Semiconductor was trading for a forward price-to-earnings ratio of about 15 entering the year, which looks like a bargain in hindsight.
The ramp-up of 5G is in the early stages, and management sees rising demand for its products across the industrial and auto markets, a shift to low-power computing, and the rollout of a new server generation.
Lattice Semiconductor Corp reported earnings, shortly after executing the trade, with the company surprising Wall Street, beating top- and bottom-line second-quarter estimates and reporting a solid outlook for the third quarter. And the stock advanced another 24%!
Lattice Semiconductor stock enjoyed early gains in 2019 thanks to the “January Effect.” The stock soared in mid-February due to strong fourth-quarter and year-end results, which included substantially improved profitability, earnings per share, and operating cash flow.
Lattice Semiconductor stock trended higher throughout the spring and summer and, as mentioned earlier, jumped further in late July on the heels of strong second-quarter results and a solid outlook.
And, recently Lattice Semiconductor has been consolidating in a six-week sideways channel; the stock now looks poised to break its recent intraday high at $21.58 en route to the long-term channel top near $26.
Next Earnings for Lattice Semiconductor
Lattice Semiconductor is expected to announce its next earnings results on Thursday, October 24th.
Equities analysts predict that Lattice Semiconductor will report earnings per share of $0.12 for the current fiscal quarter. Lattice Semiconductor reported earnings of $0.10 per share during the same quarter last year, which would suggest a positive year over year growth rate of 20%.
Brokerages expect Lattice Semiconductor to report $103.05 million in sales for the current fiscal quarter. Lattice Semiconductor posted sales of $101.48 million during the same quarter last year, which would suggest a positive year-over-year growth rate of 1.5%.
Looking at the full year, the Consensus Estimates suggest analysts are expecting earnings of $0.46 per share and revenue of $407.89 million. These totals would mark changes of +109.09% and +2.28%, respectively, from last year.
Where to now?
Since Lattice Semiconductor develops and sells semiconductor technologies in Asia, particularly China, the lifting of tariffs by Beijing on some U.S. products amid the trade tensions will certainly be of benefit to the stock price.
Also, Lattice Semiconductor continues to gain from the 4th Tectonic Shift in computing market with its low-power parallelizable architecture, which is required in edge computing devices.
YOU NEED TO BE IN TO PROFIT!
Do we expect to gain more from this trade?
What will “Stock Options Made Easy” advise members to do?
Is another trade to be considered?
What Can You Do?
Find out what we are recommending “Stock Options Made Easy" members to do – take profits, double-down, or execute a different trade?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!