Jefferies Cuts Price Targets on Sierra Wireless (SWIR) Following Flat Guidance Expectations
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Price: $30.99 --0%
Rating Summary:
2 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is maintaining its Hold rating on shares of Sierra Wireless (NASDAQ: SWIR) following its quarterly results and is lowering its price target from $8 to $7.
The company released its Q3 results with EPS of $0.15 on $147 million in sales. While sales fell short of expectations, due to a strong opex, gross margin, and cost control; EPS topped the firm's estimate of $0.04 and the consensus of $0.03.
Managements Q4 guidance calls for flat gross margin growth and flattish Q/Q revenue growth. EPS are expected to fall between $0.05 and $0.10 as sales of LTE Aircards are moving slowler than expected and carriers have reduced inventory levels. Looking ahead, SWIR also noted that its M2M auto revenues should ramp from ~$30 million in 2010 to ~$100 million in 2014.
An analyst at Jefferies comments, "We remain concerned about the continued impact from tablets cannibalizing notebooks, price competition from Asia OEMs, smartphone mobile hotspot conversions, and carriers' uncertainty in how to best optimize their profits from LTE. On the plus side, SWIR believes it has another 1-2 quarters of LTE exclusivity at AT&T (NYSE: T).
For more ratings news on Sierra Wireless click here and for the rating history of Sierra Wireless click here.
Shares of Sierra Wireless closed at $7.34 yesterday.
The company released its Q3 results with EPS of $0.15 on $147 million in sales. While sales fell short of expectations, due to a strong opex, gross margin, and cost control; EPS topped the firm's estimate of $0.04 and the consensus of $0.03.
Managements Q4 guidance calls for flat gross margin growth and flattish Q/Q revenue growth. EPS are expected to fall between $0.05 and $0.10 as sales of LTE Aircards are moving slowler than expected and carriers have reduced inventory levels. Looking ahead, SWIR also noted that its M2M auto revenues should ramp from ~$30 million in 2010 to ~$100 million in 2014.
An analyst at Jefferies comments, "We remain concerned about the continued impact from tablets cannibalizing notebooks, price competition from Asia OEMs, smartphone mobile hotspot conversions, and carriers' uncertainty in how to best optimize their profits from LTE. On the plus side, SWIR believes it has another 1-2 quarters of LTE exclusivity at AT&T (NYSE: T).
For more ratings news on Sierra Wireless click here and for the rating history of Sierra Wireless click here.
Shares of Sierra Wireless closed at $7.34 yesterday.
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