U.S. markets closed
  • S&P 500

    3,585.62
    -54.85 (-1.51%)
     
  • Dow 30

    28,725.51
    -500.10 (-1.71%)
     
  • Nasdaq

    10,575.62
    -161.89 (-1.51%)
     
  • Russell 2000

    1,664.72
    -10.21 (-0.61%)
     
  • Crude Oil

    79.74
    -1.49 (-1.83%)
     
  • Gold

    1,668.30
    -0.30 (-0.02%)
     
  • Silver

    19.01
    +0.30 (+1.62%)
     
  • EUR/USD

    0.9801
    -0.0018 (-0.19%)
     
  • 10-Yr Bond

    3.8040
    +0.0570 (+1.52%)
     
  • GBP/USD

    1.1166
    +0.0043 (+0.38%)
     
  • USD/JPY

    144.7200
    +0.2770 (+0.19%)
     
  • BTC-USD

    19,318.81
    -775.66 (-3.86%)
     
  • CMC Crypto 200

    443.49
    +0.06 (+0.01%)
     
  • FTSE 100

    6,893.81
    +12.22 (+0.18%)
     
  • Nikkei 225

    25,937.21
    -484.84 (-1.83%)
     

Sierra Wireless Rally's 18% After Earnings Beat Analyst Expectations

·1 min read

By Sam Boughedda

Investing.com -- Sierra Wireless Inc. (NASDAQ:SWIR) shares gained significantly after an improved performance for its fourth-quarter and full-year earnings, which it reported Tuesday evening.

Sierra Wireless stock rose 17.87%, to $17.15, on Wednesday.

The wireless communications equipment designer reported fourth-quarter revenue of $149.9 million, representing a 24.4% rise compared to the same quarter of 2020.

The revenue growth came after more robust demand, previous investments in inventory, and improved manufacturing flexibility amongst production.

Earnings per share reached 3 cents per share, well above the 19 cents per share loss in the fourth quarter of 2020.

Analysts polled by Investing.com anticipated a loss per share of 12 cents on revenue of $126.48 million.

The company said full-year earnings were boosted by the growth of IoT connectivity services, with total revenue increasing by 5.5% to $473.2 million. However, revenue was slightly impacted by capacity constraints in Vietnam during the third quarter.

"We worked closely with our customers, partners and suppliers to deliver strong sequential and year-over-year revenue growth in the Fourth Quarter," said Phil Brace, president and CEO of Sierra Wireless.

With the continuation of Covid-19 and the numerous variants, Sierra said it remains uncertain regarding the impact on its global business. However, it sees Q1 2022 revenue between $135 million and $150 million.

Following the report, B. Riley analyst Josh Nichols raised the firm's price target on Sierra shares to $24 from $21.50. The analyst told investors in a note that the shares are attractive with the company having passed through a key inflection point.

Related Articles

Sierra Wireless Rally's 18% After Earnings Beat Analyst Expectations

U.S. judge bans Martin Shkreli from running public companies

GDP, Alibaba Earnings, Bud Outlook: 3 Things to Watch