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Sierra Wireless Inc. Message Board

  • So i'm trying to wrap my mind around the "real numbers" for SWIR. The Yahoo finance page and other sites show a trailing twelve-month (ttm) EPS of a whopping 1.79 when in fact that's an inflated #, inflated by the sale of their AirCard segment, which allowed them to post 2.00 EPS for Q2 2013. Subtract that out, as the co. does with their non-GAAP EPS figures on their recent 10-K, and one actually gets trailing 12-mo EPS of just 0.22. And the several analysts covering the company are estimating an avg EPS of 0.48 for year 2014 and 0.83 for 2015.

    This puts present P/E for SWIR right now (on ttm EPS of 0.22) at nearly 100 (not a lowly 12 P/E), with a forward P/E of 45 on 2014 estimated EPS, and forward P/E of 26 on 2015 est. EPS two years out.

    So are those analysts not seeing something that will make for higher earnings in 2014-2015? Have they not already baked in the accretive earnings power of the new acquisitions by SWIR?

    What are people's realistic estimates for EPS in 2014 and in 2015?

    Right now, it would seem that SWIR is a bit too pricey even after the recent dip....

    For long term investors, say, willing to hold for 5 or 6 years, earnings may come in to justify the current price, but that's a long wait when there are companies very undervalued just on upcoming 2014 and 2015 estimated EPS.

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    • nice post- what you say is absolutely true. The PE for this company is much different on etrade than it is on Yahoo. This stock is being manipulated to death. The reality though is there is more competition in embedded chips now than ever, the price per chip is falling. Those are the facts

    • Excellent points, IMHO the M2M market is heating up faster than most have forecasted. "Being Connected" is becoming table stakes in many markets. I believe the explosive growth in this market may move the time line to three to four years instead of the five to six most analysts state. While services may not be there for all markets now, the costs of retrofitting are causing a demand to put the connectivity in at manufacture today, regardless of service availability.

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