Novatel (NVTL) Trading Lower Following Sierra (SWIR) Q4 Miss; Traders Eye Cisco (CSCO) into Earnings

Sierra Wireless (Nasdaq: SWIR) isn't the only communications company seeing some downside today, following a Q410 earnings report yesterday, which had EPS of $0.16 on revs of $0.23, missing the consensus EPS of $0.23 with revs of $174.12 million; Novatel Wireless Inc. (Nasdaq: NVTL) is also seeing some pressure.

NVTL is off about 16% on slightly better-than-average volume today, as investors are worrying about a potential dip in their earnings, which are scheduled to be released after the market closes on February 24, 2011. NVTL has already been staving off competition from Asia in the 4G market, and waning demand from consumers as many prefer WiFi connections to lengthy, expensive wireless contracts.

Others in the wireless segment falling after reporting their earnings, guidance include:

• Smith Micro Software Inc. (Nasdaq: SMSI), which is down 35.7% following the issuance of guidance that calls for Q111 revs of $15 - $20 million, below the consensus revs of $35.22 million. SMSI also has suspended their FY11 outlook;
  
  
• Computer Sciences Corporation (NYSE: CSC) is 11.4% lower following a Q311 earnings beat, but lowered FY11 outlook, which misses Street views.

Investors may be keeping their eyes on Cisco (Nasdaq: CSCO) today, who is expected to report Q211 earnings after the market closes today. CSCO shares are trading 0.5% stronger this morning.

Last quarter, Cisco gave a gloomier outlook for FY11, guiding Q211 to a rate of about $10.11 - $10.31 billion, which fell short of consensus expectations.

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