Sierra Wireless Earnings: Here’s Why Investors are Selling Shares Now

Sierra Wireless Inc. (NASDAQ:SWIR) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.36%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Sierra Wireless Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Decreased 32.52% to $101.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sierra Wireless Inc. reported adjusted EPS loss of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.05. It beat the average revenue estimate of $100.05 million.

Quoting Management: “We experienced solid year-over-year revenue growth in the quarter, powered by a strong contribution from the acquired Sagemcom M2M business,” said Jason Cohenour, President and Chief Executive Officer. “A major focus in the quarter was completing the sale of our AirCard® assets and operations to Netgear, which was accomplished in early April. We are now an M2M pure play, with leading global market share, the industry’s broadest product line, and blue-chip customers. Moreover, we now have significant financial capacity to accelerate growth and value creation through acquisitions, as we capitalize on the secular growth opportunity in M2M.”

Key Stats (on next page)…

Revenue decreased 222.14% from $83.02 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.33 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.25 to a profit $0.05. For the current year, the average estimate has moved down from a profit of $0.94 to a profit of $0.29 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)