Sierra Wireless Goes Negative
Sierra Wireless (NAS: SWIR) reported earnings on Feb. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sierra Wireless met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Sierra Wireless booked revenue of $147.2 million. The 12 analysts polled by S&P Capital IQ wanted to see net sales of $148.1 million. GAAP sales were 12% lower than the prior-year quarter's $167.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.08. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.08 per share on the same basis. GAAP EPS were -$0.44 for Q4 against $0.02 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 28.2%, 100 basis points worse than the prior-year quarter. Operating margin was -0.9%, 140 basis points worse than the prior-year quarter. Net margin was -9.3%, 980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $141.7 million. On the bottom line, the average EPS estimate is $0.03.
Next year's The average EPS estimate is $0.48.
The stock has a four-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 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 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 hold, with an average price target of $7.55.
The game is changing for makers of communications equipment, and some of the old guard may not make it. Where will Sierra Wireless fit in? Who's going to lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Sierra Wireless to My Watchlist.
At the time this article was published 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 ofMotley 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.