The 10-second takeaway
For the quarter ended June 30 (Q2), Sierra Wireless beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share grew significantly.
Gross margins expanded, operating margins dropped, net margins grew.
Sierra Wireless reported revenue of $109.6 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $108.0 million on the same basis. GAAP reported sales were 35% lower than the prior-year quarter's $167.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.03. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. Non-GAAP EPS of $0.03 for Q2 were 90% lower than the prior-year quarter's $0.30 per share. GAAP EPS of $2.00 for Q2 were much higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 33.3%, 260 basis points better than the prior-year quarter. Operating margin was -3.6%, 860 basis points worse than the prior-year quarter. Net margin was 56.0%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $114.4 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $443.5 million. The average EPS estimate is $0.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 317 members out of 341 rating the stock outperform, and 24 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Sierra Wireless a green thumbs-up, and three 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 $12.51.
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