It has only itself to blame.
This morning, Sequans reported its fiscal first-quarter 2021 earnings -- or more precisely, its Q1 2021 losses. Instead of the $13.8 million in sales that analysts had projected, Sequans collected only $12.3 million, and instead of the $0.21 per American depositary share (ADS) that analysts predicted, Sequans lost $0.33 per ADS. (Albeit on a "non-IFRS" basis, the company says losses were only $0.15 per ADS.)
Sequans' sales climbed 40% year over year despite the miss but were down 22% sequentially, suggesting that growth may be stalling. Conversely, gross profit margins that were up sequentially were down year over year, slumping by 120 basis points to just 50.1%.
In its earnings release, Sequans emphasized the "continued ... strong momentum" and "solid demand" in its IoT business. Problem is, management only expects this to translate into about "a 10% sequential increase in revenue" in the second quarter of 2021.
Assuming management is right, that would translate into about $13.5 million in Q2 revenues, but Wall Street had been looking for $15.6 million. Result: After missing earnings in Q1, Sequans seems to be saying it's going to miss again in Q2.