|Bid||21.15 x 2200|
|Ask||21.96 x 3200|
|Day's Range||20.64 - 21.67|
|52 Week Range||12.66 - 38.50|
|Beta (5Y Monthly)||0.23|
|PE Ratio (TTM)||9.53|
|Forward Dividend & Yield||0.48 (2.30%)|
|Ex-Dividend Date||Mar 11, 2021|
|1y Target Est||N/A|
Sierra Wireless delivered better-than-expected sales in the fourth quarter as the IoT solutions provider saw an increase in recurring and other services revenue. This was the third consecutive quarter of sequential revenue growth for the company. That said, Sierra Wireless (SWIR) posted a net loss per share (EPS) of $0.31 during the fourth quarter, which was higher than analysts’ expectations of a net loss per share of $0.26. Revenue decreased 3.7% year-on-year to $120.48 million, topping analysts’ estimates of $116.23 million. Driven by changes in product and customer mix in the company’s embedded broadband and IoT solutions segment, gross margin rose to 36% from 35.8% in the year-ago period. For fiscal 2020, thanks to lower mobile computing module sales and pandemic-led component supply constraints, the company generated sales of $448.6 million , reflecting a year-on-year decrease of 18%. Diluted loss per share came in at $1.93, versus a net loss per share of $2.06 in the comparable year-ago period. Sierra Wireless President and CEO Kent Thexton said, “We are winning in the market with our Solutions offering and our Recurring and other services revenue is now at 27.1% of total revenue.” Looking ahead to 1Q, Sierra Wireless guided for revenue of $109.9 million, in line with consensus. The company also noted that there is strong demand for its products and services in 1Q. It has secured orders and recurring revenue that is about 15% higher than the Street estimate, but current supply constraints reduce its ability to fully address this demand. (See Sierra Wireless stock analysis on TipRanks) Yesterday, Canaccord Genuity analyst Michael Walkley raised the price target to $30 (72% upside potential) from $24 and reiterated a Buy rating. Walkley said, “Given the company’s continued investments in core growth areas we believe it is well positioned to benefit from IoT industry growth trends longer term.” Turning to the rest of the Street, SWIR has a Moderate Buy consensus rating, based on 4 Buys, 1 Hold and 1 Sell. The average analyst price target of $22.25 implies about 28% upside potential from current levels. Related News: Western Alliance To Buy AmeriHome For $1B; Shares Drop 3.5% Match Group Snaps Up Hyperconnect For $1.73B; Shares Gain 2.4% Redfin To Buy RentPath For $608M; Shares Jump 12% More recent articles from Smarter Analyst: B2Gold Reports Record Annual Gold Production; Street Sees 73% Upside Autodesk To Snap Up Innovyze For $1B; Street Sees 14% Upside Xperi Holding’s 4Q Earnings Miss Estimates; Shares Drop 7% Hercules Capital Posts Better-Than-Expected 4Q Results; Shares Gain Pre-Market
Every investor in Sierra Wireless, Inc. ( TSE:SW ) should be aware of the most powerful shareholder groups. Large...
(Bloomberg) -- Tencent Holdings Ltd. slumped after a world-beating surge in the stock pushed its market value to the cusp of $1 trillion for the first time.The Chinese Internet behemoth lost 6.3% in Hong Kong on Tuesday, putting its market capitalization below $890 billion. Traders took profit after Monday’s 11% rally, which was Tencent’s biggest in almost a decade. Adding to the caution were comments by an adviser to China’s central bank at a conference, reported by local media, indicating that excessive liquidity was creating asset bubbles.Read more: China Asset-Bubble Warning Threatens Stock Frenzy in Hong KongThousands of bullish Tencent options lost almost all their value, after some surged as much as 118,300% on Monday. The frenzy in derivatives trading pushed the cost of one-month Tencent options to the highest since March 2014 relative to those tracking the Hong Kong benchmark, according to data compiled by Bloomberg.The prospect that China will tighten funding conditions threatens to derail Tencent’s stock rally, which has been underpinned by a relentless flow of capital from the mainland. Onshore funds have purchased a record amount of Hong Kong shares this month, with about a quarter of that targeting Tencent. As more than a billion people use its WeChat social-media platform, Tencent is ubiquitous to Chinese investors who have no access to Hong Kong shares of rival Alibaba Group Holding Ltd. through the trading links.Tencent was the most recent mega-cap company to benefit from investor enthusiasm for the tech sector, with its looming milestone a marker for the euphoria sweeping the stocks globally. Before Tuesday, the stock had added $251 billion in January alone -- by far the biggest creation of shareholder wealth worldwide. Warnings are rising that easy monetary policy is fueling bubbles in global equities, especially in the U.S., where gains have been led by the Nasdaq.As investors seek cheaper alternatives, they’ve been piling into Hong Kong equities. That’s helped make the Hang Seng China Enterprises Index one of the world’s best-performing benchmarks in the past month.While Tencent has long been an investor favorite in Asia, returning more than 100,000% since its 2004 initial public offering as of Monday, there are other risks to the rally.In 2018, a government crackdown on China’s online gaming industry squeezed Tencent’s most profitable business, which at the time accounted for about 40% of its revenue. Coupled with a slowing Chinese economy and a weakening yuan, Beijing’s nine-month halt on approvals for new games contributed to a 22% slump in the shares.A campaign against monopolistic practices since late last year has targeted many of the industries in which Tencent and rival Alibaba operate, including the online payments industry. But while increasing regulatory risk has left Alibaba’s shares about 18% lower than their October peak, Tencent has closed at a record in seven of the past nine sessions.Tencent would be the second Chinese firm to join the trillion-dollar club after PetroChina Co., which was briefly worth more than that in late 2007 before collapsing in value. U.S. tech giants Apple Inc., Amazon.com Inc., Alphabet Inc. and Microsoft Corp. are also worth more than $1 trillion each, as is Saudi Arabian Oil Co.Tencent was founded in 1998 by four college classmates and a friend from Shenzhen who devised a Chinese version of the instant messaging service ICQ. Led by “Pony” Ma Huateng -- ma is Chinese for “horse” -- the company’s chat software became the primary communication tool for a generation of young Chinese.Tencent’s surge has outpaced all but the most bullish analysts’ forecasts. The stock’s closing level of HK$766.50 on Monday was almost 10% higher than the consensus 12-month price target compiled by Bloomberg, the widest gap since 2014.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.