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Here's Why Sierra Wireless (SWIR) Stock Is Soaring Today

Ryan McQueeney

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.

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