The 10-second takeaway
For the quarter ended March 31 (Q1), Sierra Wireless beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Margins improved across the board.
Sierra Wireless booked revenue of $150.3 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $145.4 million on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $144.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The nine earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS were $0.01 for Q1 versus -$0.25 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 29.8%, 240 basis points better than the prior-year quarter. Operating margin was 0.3%, 620 basis points better than the prior-year quarter. Net margin was 0.2%, 560 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $152.1 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $626.1 million. The average EPS estimate is $0.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 321 members out of 346 rating the stock outperform, and 25 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Sierra Wireless a green thumbs-up, and five 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 $8.81.
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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.