The 10-second takeaway
For the quarter ended March 31 (Q1), Sierra Wireless beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank to a loss.
Gross margins grew, operating margins contracted, net margins dropped.
Sierra Wireless logged revenue of $101.4 million. The nine analysts polled by S&P Capital IQ predicted net sales of $100.1 million on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $150.3 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 $0.09. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. Non-GAAP EPS of $0.09 for Q1 were 44% lower than the prior-year quarter's $0.16 per share. GAAP EPS were -$0.20 for Q1 against $0.01 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 32.9%, 310 basis points better than the prior-year quarter. Operating margin was -6.6%, 690 basis points worse than the prior-year quarter. Net margin was -6.0%, 620 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $106.2 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $436.3 million. The average EPS estimate is $0.17.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 315 members out of 339 rating the stock outperform, and 24 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 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 outperform, with an average price target of $12.86.
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