The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sierra Wireless whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share expanded.
Gross margins grew, operating margins contracted, net margins expanded.
Sierra Wireless logged revenue of $109.4 million. The eight analysts polled by S&P Capital IQ expected to see sales of $155.9 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $147.2 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 $0.33. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS were $0.63 for Q4 versus -$0.44 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 33.1%, 490 basis points better than the prior-year quarter. Operating margin was -1.0%, 10 basis points worse than the prior-year quarter. Net margin was 17.9%, 2,720 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $141.4 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $609.0 million. The average EPS estimate is $0.76.
The stock has a three-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 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Sierra Wireless a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sierra Wireless is outperform, with an average price target of $10.14.
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