Shares of Sierra Wireless SWIR gained more than 15% in morning trading Friday after the wireless communications equipment maker posted better-than-expected first-quarter results on the top and bottom lines.
Sierra Wireless posted earnings of $0.18 per share and revenue of $162 million, beating the respective Zacks Consensus Estimates of $0.13 and $155 million. EBITDA came in at $12.4 million, nearly doubling the prior year’s $6.7 million.
Breaking it down by segment, OEM Solutions grew 10% to $133 million, Enterprise Solutions was up 44.8% to $21.7 million, and Cloud and Connectivity Services gained 2.1% to $7.1 million.
“In the first quarter of 2017, we delivered solid year-over-year revenue growth and profitability results that exceeded our expectations,” said CEO Jason Cohenour. “We continued to strengthen our position as a leader in device-to-cloud solutions for the Internet of Things with new customer wins, new product offerings and the acquisition of the assets of GlobalTop Technology's GNSS business.”
Sierra Wireless is a leading developer of device-to-device wireless communications solutions, and the company has emerged as a leader in the booming Internet of Things market. Last month, Sierra acquired GlobalTop’s GNSS embedded module business, boosting its data processing offerings (also read: How to Invest in the "Internet of Things").
For the upcoming quarter, which will include a full quarter of contribution from the new business, Sierra guided for revenue of $165 million to $175 million. This projection is ahead of our current consensus estimate of $162.85 million.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Sell These Stocks. Now.
Just released: today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sierra Wireless, Inc. (SWIR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research