Sierra Wireless Earnings: Here’s Why Investors Don’t Like These Results

Sierra Wireless Inc. (NASDAQ:SWIR) delivered a profit and met 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 0.31%.

Sierra Wireless Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 90% to $0.03 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Decreased 34.54% to $109.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sierra Wireless Inc. reported adjusted EPS income of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.03. It beat the average revenue estimate of $109 million.

Quoting Management: “In our first quarter as an M2M pure-play, we delivered record quarterly revenue with nearly 15% year-over-year growth,” said Jason Cohenour, President and Chief Executive Officer. “Our record revenue, combined with solid gross margin and good cost control, led to a significant improvement in Non-GAAP earnings, demonstrating the leverage in our operating model as we grow the business.”

Key Stats (on next page)…

Revenue increased 8.09% from $101.4 million in the previous quarter. EPS increased to $0.03 in the quarter versus EPS of $-0.02 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 $0.11 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $0.29 to a profit of $0.26 over the last ninety days.

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

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