Sierra Wireless (SWIR) Stock Falls on Earnings Miss, Light Guidance
NEW YORK (TheStreet) -- Shares of Sierra Wireless (SWIR) - Get Report were falling 23.4% to $19.20 with heavy trading volume on Friday after the communication equipment company missed analysts' estimates for earnings in the third quarter.
After the market closed on Thursday, Sierra Wireless reported earnings of 23 cents a share for the third quarter, below analysts' estimates of 25 cents a share. Revenue grew 7.9% year over year to $154.58 million for the quarter, below analysts' estimates of $158.73 million.
"While our Q3 results were solid, revenue was slightly below our expectations, as demand for 4G enabled enterprise notebooks encountered temporary headwinds as the industry transitions to a new processor platform," President and CEO Jason Cohenour said in a statement. "We see the mobile computing segment moving back to normalized demand levels in the coming months."
Sierra Wireless said it expects to report earnings of 9 cents to 11 cents a share and revenue of $148 million to $151 million for the fourth quarter. Analysts expect the company to report earnings of 29 cents a share and revenue of $165.23 million for the fourth quarter.
About 3.1 million shares of Sierra Wireless were traded by 12:04 p.m. Friday, above the company's average trading volume of about 372,000 shares a day.
TheStreet Ratings team rates SIERRA WIRELESS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate SIERRA WIRELESS INC (SWIR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: SWIR
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.