The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sierra Wireless met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Sierra Wireless booked revenue of $147.2 million. The 12 analysts polled by S&P Capital IQ wanted to see net sales of $148.1 million. GAAP sales were 12% lower than the prior-year quarter's $167.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.08. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.08 per share on the same basis. GAAP EPS were -$0.44 for Q4 against $0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.2%, 100 basis points worse than the prior-year quarter. Operating margin was -0.9%, 140 basis points worse than the prior-year quarter. Net margin was -9.3%, 980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $141.7 million. On the bottom line, the average EPS estimate is $0.03.
Next year's The average EPS estimate is $0.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 323 members out of 349 rating the stock outperform, and 26 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Sierra Wireless a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sierra Wireless is hold, with an average price target of $7.55.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.