The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Sierra Wireless missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins shrank, operating margins grew, net margins increased.
Sierra Wireless booked revenue of $162.6 million. The eight analysts polled by S&P Capital IQ expected to see a top line of $165.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $146.8 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 $0.28. The nine earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS were $0.12 for Q3 against -$0.03 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 29.4%, 10 basis points worse than the prior-year quarter. Operating margin was 2.3%, 280 basis points better than the prior-year quarter. Net margin was 2.3%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $179.6 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $659.6 million. The average EPS estimate is $0.86.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 322 members out of 347 rating the stock outperform, and 25 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 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 $10.14.
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